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 A professional home inspector will visually examine all parts of a house and property. Items on your inspection report will include:
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Foundations, Basements and Structures
Basement floor and walls; proper drainage and ventilation; evidence of water seepage
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Exterior Siding, Windows, Doors
Exterior walls, windows, and doors; porches, decks, and balconies; garage
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Roof
Roof type and material; condition of gutters and downspouts
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Interior Plumbing System
Hot and cold water system; the waste system and sewage disposal; water pressure and flow; hot water equipment
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Electrical System
Type of service, number of circuits, type of protection, outlet grounding, load balance
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Central Heating System
Energy source; heating equipment; fans or pumps; ducts or pipes; thermostat
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Central Air Conditioning System
Energy source, type of cooling equipment, capacity, distribution
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Interior Walls, Ceilings, Floors, Windows and Doors
Walls, floors, ceilings, stairways, cabinets, countertops
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Attic
Structural, insulation, and ventilation information
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Fireplace
Notes about the chimney, damper, and masonry
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Garage
Doors, walls, floor, opener
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Appliances
Includes a wide range of built-in and other home appliances; smoke detectors; and television/cable hookups
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Lot and Landscaping
Ground slope away from foundation; condition of walks, steps, and driveway
 Tips for Painless Appraisals
Appraisers compare the features and condition of a home to similar properties to arrive at a dollar figure for its value. Getting the transaction closed will be easier if you make the appraiser’s job easier.
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Ask the lender to consider using an appraisal done by the sellers just prior to the sale.
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Give the appraiser copies of the comparables you located when you were pricing the property.
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Sharing your comparables is particularly important if the home has unusual features. Appraisers seldom take the time to dig for true comparables, which may result in a low appraisal if a home isn’t typical for the area. —Danielle Kennedy, International Speakers Bureau, Dallas
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If possible, tour the home with the appraiser to ensure an accurate picture of the property.
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Review the appraisal report carefully for errors or omissions, such as listing two bathrooms instead of three, that might affect value.
5 Common Flaws in Residential Appraisals
Unclear neighborhood boundaries. Use specific street names, subdivision names, or price/age ranges to define the parameters of the neighborhood.
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Omitted or incorrect site dimensions. Be sure that an appropriate plat is attached.
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Insufficient allowances for improvements. Take updating and remodeling into account, especially in older properties.
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Incorrect or inaccurate calculations of gross livable area. Be sure an accurate floor plan is attached.
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Over- or underestimate of construction quality. Consider the quality of materials; they have a major impact on estimating replacement costs.
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Adapted from “Back to the Basics: Typical Problems Encountered on Residential Appraisal Reviews, Dane Sever, Appraisal Review, October 1993
5 Strategies If the Appraisal Is Too Low
If the appraisal is too low, the buyers may not be able to borrow enough to close the deal. If this problem arises, consider taking the following steps:
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Check the appraisal for mistakes. David Rathgeber, Century 21 Laughlin in McLean, Va., recalls a situation where a property was on the border of two different jurisdictions and the appraiser pulled comps from the wrong MLS. When Rathgeber asked him to take a second look—with correct comps—the problem was solved.
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Have the buyers make up the difference with a larger downpayment.
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Have the sellers make up the difference by taking back a purchase money mortgage from the buyers.
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Renegotiate the price.
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Talk to the lender if you have a legitimate case. For instance, maybe the property has a desirable feature the appraiser didn’t take into account. Or the appraiser failed to look at other comparable properties that sold at higher prices.
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