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Asked by Maria, 92376 Sat Mar 22, 2008

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Answers

5
David - Appr…, , Maricopa, AZ
Sat Mar 22, 2008
A home inspection and termite inspection would be well worth the money for knowing the condition of the property prior to closing. Your lender will require an appraisal prior to closing also. They will also order an appraisal which you will pay for, either up front or at closing. If the appraised value is lower than the purchase price you will have to come up with the difference in addition to the closing costs. If the appraisal shows the property is in a declining market, you may have to put down an additional 5% for the deal to close (depending on the type of financing you are getting - conventional, FHA).

With market conditions of most areas the way they are, and even with all the regulation and requirements in place and proposed changes to the real estate, mortgage, and appraisal industry, there are a lot of appraisers across the country that will inflate a value and/or provide misleading market analysis for the deal to close, to satisfy those with a direct or indirect vested interest in the outcome.
0 votes
Linda Ginex, Agent, Newport Beach, CA
Sat Mar 22, 2008
K. Johnson,
California is not an attourney state, it is an esrow state. Hiring an appraiser, which your lender will do, and a home inspector, will show the faults of the property and what repairs may be required. Why hire an attourney to do this? Buy a home warranty for $330 at Fidelity to get a comprehensive plus plan for a year.
0 votes
Steve Ragghi…, Agent, San Rafael, CA
Sat Mar 22, 2008
I agree with Linda. All buyer's should expect to spend $500 or so on inspections. This is a drop in the bucket compared to not having them and discovering major problems down the line. Expect the banks to do nothing!
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Linda Ginex, Agent, Newport Beach, CA
Sat Mar 22, 2008
Yes, you can expect to pay for both. If you qualify for the payments and you get a good deal it will be worth it.
0 votes
K. Johnson, , Almaden, San Jose, CA
Sat Mar 22, 2008
YES! The bank will not pay for inspections or appraisal (for your lender). You are not required to do any inspections, but since you are buying a property "as is" you should know what repairs will need to be made and the condition of the property. A termite inspection is VERY important. Serious problems found during the inspection period will allow you to walk away from the deal.
Hopefully your realtor is telling you this. You may also want to consider hiring an attorney, because the bank is out to protect THEIR interests and the contract language can be confusing.
0 votes
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