Posted by squash on January 21, 2005, 9:31 am
If I plan to purchase a condo with cash, do I need to do both an
appraisal and home inspection? I would think a home inspection is
enough? I have a fairly good idea of how much similar sized condos are
selling in the area.
Thx!
Posted by Jonathan Kamens on January 21, 2005, 9:48 am
You don't need an appraisal if you're comfortable with your
knowledge of the value of the home and you're paying cash for
it. The appraisal is only required if you're getting a loan
to help pay for the house, because the lender will want to
know the appraised value of a property that is collateral on
a loan.
Posted by Christopher Green on January 21, 2005, 12:00 pm
On 21 Jan 2005 06:31:37 -0800, squash@peoriadesignweb.com wrote:
>If I plan to purchase a condo with cash, do I need to do both an
>appraisal and home inspection? I would think a home inspection is
>enough? I have a fairly good idea of how much similar sized condos are
>selling in the area.
>Thx!
The appraisal is for the benefit of the lender: the lender wants to
know that the condo is worth more than he is lending. He's interested
in what the condo is worth on the market, not in whether the heating
is about to need major work.
The home inspection is for your benefit: once the deal closes, any
major repairs needed are your problem, not the seller's. You want to
know about these before you close, because your leverage over the
seller is zero afterward.
--
Chris Green
Posted by Andy Hill on January 21, 2005, 1:34 pm
squash@peoriadesignweb.com wrote:
>If I plan to purchase a condo with cash, do I need to do both an
>appraisal and home inspection? I would think a home inspection is
>enough? I have a fairly good idea of how much similar sized condos are
>selling in the area.
<shrug> It's your money. If you're competent to appraise the property,
then by all means do so. Same for the inspection, legal work, etc.
Posted by John A. Weeks III on January 21, 2005, 4:14 pm
squash@peoriadesignweb.com wrote:
> If I plan to purchase a condo with cash, do I need to do both an
> appraisal and home inspection? I would think a home inspection is
> enough? I have a fairly good idea of how much similar sized condos are
> selling in the area.
Other folks have answered your question. One thing I would like
to add is the major thing you need to investigate in a condo
is the condo association and its financial health. I have seen
and heard all kinds of horror stories about people moving into
a condo, only to find that the buildings have significant defects
that the condo owners are going to have to pay for. I know of
one building that is facing condemnation over structural problems
due to termites, yet the condo board will not authorize the
cost of the exterminators. Another high-rise that I know of
has windows where the wood has rotted, and now all the windows
need to be replaced. You don't want to buy these types of problems.
-john-
--
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John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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>appraisal and home inspection? I would think a home inspection is
>enough? I have a fairly good idea of how much similar sized condos are
>selling in the area.
>Thx!