The Importance of Home Inspection

The importance of a formal home inspection can never be over emphasized and it is probably one of the most important aspects of the home buying process. While an appraisal provides a general market value of a property, a home inspection provides the most accurate tangible value. Home inspections are not only required as part of the home buying process in many states, but they also give buyers peace of mind about one of the biggest investments of their lifetime. It also fulfills the sellers’ obligation to provide accurate disclosure information. Most banks and mortgage servicers require a home inspection report as part of the loan closing paperwork.

A home inspection is an objective evaluation of a home’s condition by a trained expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property.  A home inspection typically includes an examination of the building codes, heating and central air conditioning systems, interior plumbing, electrical systems, the roof, attic, visible insulation, walls, ceilings, floors, windows, foundations, and basements. Some may also include appliances and outdoor plumbing. Within five to seven days after the inspection is complete, a home inspector provides a detailed written report of the findings. The home buyer pays for the inspection.

The result of a third-party inspection not only discovers the flaws, but it also underscores the positive features of a home. This information documented will ultimately determine the final price of the home. The home owner can choose to repair or remediate any defects to increase the asking price and conversely, the buyer could use them to lower it. The inspection enables both the seller and buyer of the home to make critical decisions, which will affect the outcome of the deal.

The American Society of Home Inspectors (ASHI) is the largest professional association for home inspectors in North America. The National Association of Certified Home Inspectors is another source for identifying and locating licensed home inspectors in every state. The websites of both these organizations are a great resource to learn the various aspects of the home inspection process.

Housing Market Recovery?

The million dollar question is has the U.S. housing market hit rock bottom yet or not? While there are no sure shot answers to that question, all the economic indicators seem to predict that the market would start crawling upwards this year.

According to Fannie Mae, the largest U.S. mortgage buyer, home prices would probably start going up in the third quarter of 2011 and rise 0.6 percent for the year, which is the first annual increase since 2006. Also, based on the median forecast of 30 economists at a symposium of the Federal Reserve Bank of Chicago last month, the real residential investment, which is an inflation-adjusted measure of homebuilding, will increase 9.6 percent in 2011 after five years of declines to a record level.

Housing demand, which is another key indicator of this segment’s health, is considered to have a good chance of stabilizing this year, albeit not at a consequential level. But considering that it had plunged last year, this is certainly good news. Also, according to estimates made by the National Association of Realtors and the Mortgage Bankers Association, construction and home sales will rise in every quarter of 2011.

Experts caution however, that it is too early to rejoice because this predicted uptick is anemic at best and it is not going to give any significant boost to the economy or cause a sustainable turnaround because we are coming off 50-year lows and we continue to deal with the foreclosure fiasco.

Just last week, the Massachusetts Supreme Judicial Court upheld a judge’s decision that two foreclosures were invalid because the mortgages were improperly transferred between securities. Are these just two isolated cases or are they the proverbial tip of the iceberg? Only time will tell.

If unemployment keeps improving and if the economy continues on its slow path to recovery, the gains in jobs and income will increase the pool of qualified home buyers and this may slowly bring a measurable turnaround and an eventual recovery in the housing market.

Supporting The Search for A Cure

On October 16th, 2009 here at Coldwell Banker Ackley Realty, we  joined in to show our support for finding a cure and promoting the awareness for breast cancer.  This year alone nearly 200,000 new cases have been diagnosed and as many as 40,000 deaths have occurred because of breast cancer.

To show our support for those who are survivors, family and friends of survivors and/or victims of the disease our staff wore pink shirts and a few even had pink shoes and ribbons so that in each and every interaction of the day whether it be with clients or family, awareness would be raised and more support for a worthy cause would be gained.

For more photos from our breast cancer awareness day be sure to head over to our Facebook page.