A while ago I wrote about the difference between two very important components of the home buying process: the appraisal and the inspection. I covered a bit about the appraisal in the previous post.

The inspection is key to making an informed decision. After all, it’s one thing to buy a pair of shoes that pinch your feet and another all together to buy a house and find there are too few piers holding up the joists that it up.

A home inspection is not required by anyone. The bank will not require one. The insurance company won’t. And the seller certainly won’t. But it is always a good idea.

What will the inspection show? Well, a general home inspection is just that - general. In North Carolina home inspectors must be licensed by the state. But they do not need to be structural engineers, electrical engineers, licensed plumbers or have x-ray vision to see behind walls. They will check those parts of the house to which they have access without moving furniture or lighting pilot lights that are out. They won’t fix issues that they find. That’s not their place or job. You hire them to note their findings. Its between you and the sellers as to what, if anything, needs to be corrected.

And keep in mind that when you’re buying a “used house” - as opposed to new construction - you shouldn’t expect to get a place where every floor is squeak-free and all cabinet doors hang plumb. What you want is to make sure that all major systems and components are in good repair and performing the function for which intended. For example, a roof may be 17 years old, and it could be guessed that it’s closer to the end of its useful life than the beginning. But a roof has pretty much one function: keep rain out of the house. So, if the shingles are all where they’re supposed to be and there isn’t evidence of leaks or rotten wood, an old roof is not really a repair issue. It’s a “heads up” issue and you should keep your eye on things and prepare to eventually have to put on a roof.

On the other hand, if the hall bath sink is leaking, it’s perfectly reasonable to ask the sellers to have the issue corrected.

And if you find that the floor joists are rotten and were installed incorrectly in the first place - ouch. That is a time when you’ll be so glad you spent the money on an inspection.

There’s much more to the what’s, when’s, how much’s, and how’s, but keep in mind that an inspection is performed for you to be able to move ahead with your purchase as well informed as possible. It shouldn’t be seen as a way to ‘get out of a contract’, as one shouldn’t enter into a contract for a property unless you actually want to buy it.

And it shouldn’t be feared. Contact a good home inspector, ask about cost and what’s covered.

Here’s a chance to get a home in Oak Ridge, NC - a community that has always been popular and is getting more and more so every year. The price is VERY good for this area, at $215,000.

And being in Oak Ridge, the tax rate is lower than in Greensboro or Winston-Salem. That is, this same house in Greensboro would have an annual tax bill of over $2,400 instead of $1,400!! (For an explanation of how taxes are figured in Guilford County, see this post…)

A few highlights:

• 3 bedrooms PLUS and office
• rocking chair front porch
• screened porch & deck overlooking woods
• stainless steel kitchen appliances
• new berber carpet throughout
• fresh paint in several rooms
• Master BR has two very large closets
• Master Bath has separate tub and shower and separate vanities
• 2-car garage with room for workbench PLUS extra storage room
• large pantry

SCHOOLS:

Stokesdale Elementary

Northwest Middle

Northwest High

Feel free to contact me for more information, or ask your Buyer’s Agent to get you the scoop on MLS #G467515.

CLICK HERE for a VisualTour of this listing.

In some parts of the country, it is becoming more and more difficult to say what a property is “worth” when talking in comparison to closed properties in the neighborhood. And looking at recent sales, or “comps”, is what an appraisal is all about.

But as some neighborhoods are more and more impacted by foreclosures or otherwise distressed sellers just trying to get out from under their mortgages, those comps may pull the values of surrounding homes down - on paper, anyway. And paper is where the loans are made.

In my area, Greensboro, NC and the towns around, this has not been so much of an issue. But what if you’re under contract to buy, which means you and the seller have agreed to the purchase price and other terms and the appraiser comes back with a number that is lower than that agreed upon price?

First of all, NO ONE likes it when this happens. Not the lender, the agents involved and certainly not the seller. But what to do? The findings can be challenged. Appraising is part art and part science. So, if there are good comps which may have been overlooked that justify the price, then a good appraiser can take those into consideration. Talk with your lender about what to do.

The seller can agree to take the lower price. Ouch. But if they don’t, you’re not obligated to purchase the property. Even if you are willing to proceed, the lender will have something to say about it.

The bottom line is that - emotional distress aside - you as a buyer are not at much risk by a low appraisal. And in the Greensboro area, it is not a common occurrence.

So, if it happens, breath deeply, talk to your lender and your agent, and move forward.