Anytime you want to buy a house, you need (want) to have it inspected by a professional. This individual is licensed by the state, required to have completed several hours of education and hands-on training. Sometimes, the lender will actually have an appraiser as part of the team but if not, he/she would know of someone qualified to recommend. Even so, we recommend you find a qualified but independent appraiser not connected to the lender so you end up with an appraisal that would not be biased in any way.
The goal with any home purchase is to choose an objective third party for your appraiser. This individual should have zero financial interest as well. While you would likely pay for the appraisal at the time you apply for your mortgage loan, just remember this is absolutely one of the most important steps you can take. During the process, the appraiser will search every inch of the home, checking for broken beams in the attic, previously flooded basements, non-operative garbage disposals, damaged foundation, and so on. In fact, the appraiser will measure the square footage of the home to ensure you are paying for the right size.
Typically, the appraiser does a side-by-side comparison with like properties of the same age and size in your vicinity. In addition, the appraiser generally has an excellent understanding of the property market overall, as well as the current market. After completing the process, the appraiser will complete a statement that lists anything that would be deemed damaging to the property’s value, which might include steep sloping yard, inadequate access road, and so on.
Most importantly, the statement will list major defects or flawed characteristics in the home. Again, this could include an unstable foundation, cracks in the basement, faulty wiring, poor plumbing, and other serious problems. As the buyer, you would have the opportunity to barter on price for the house due to the damage, demand the damage be fixed by the seller, or walk away. Finally, depending on the type of loan you are securing such as FHA, this organization would demand that the serious problems be fixed by the seller so you would have no say in that decision.