Finally, we found the home my buyers want to buy in north Scottsdale. It's an REO and we went back and forth in the negotiation of the price with the bank. We get the "verbal" approval today with the "promise" of bank instructions in 24-48 hours from the listing agent. So, we get prepared to go into full gear.
I provided a list of 3 reputable home inspectors for our Scottsdale area to the buyers. But, as usual, they had gone on line and found an inspector who actually lives in the subdivision. The inspector told my buyers they really needed to get the appraisal done first because "he knows" the subdivision and doesn't think the home will appraise. After all, he had just tried to refinance his own home in this subdivision and it didn't appraise high enough for his refinance. He LIED and told my buyer his home was over 3600 SF and it "only" appraised at $600,000. There was no way my buyer's home at 2600 SF would appraise for the purchase price of $500,000 despite the fact that two homes sold in the last 3 months at the $500,000 mark.
So, the question has come up - what do you do first? The appraisal or the inspection?
My response - use only REPUTABLE home inspectors who don't over step their area of knowledge.
My resolution - I will meet with this " licensed" home inspector on Sunday with the tax print out of the size of his home. I will ask him how he could lie to my buyers about values in the area and I will tell him to stick to what he is licensed to do - inspect the home for faults, DO NOT give out values you know nothing about.
So, which do you do? The appraisal or the home inspection? Me - I want my buyers to know they are in a sound home with most things functioning as they should. The value has already been shown by the recently sold comps, although the appraiser will always have the last say. But, PLEASE, don't overstep YOUR area of expertise. I can't check wiring and A/C - please don't check values.