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For More Information Contact:
Charles M. Bellefontaine - 630-327-2700
Public Relations Chairman

Frequently Asked Questions: Home Inspections And Home Appraisals
Tuesday, November 12, 2002

Q. Why is the distinction between a home inspection and a home appraisal important?

A. In this age of hectic lifestyles and specialized expertise, most consumers have neither the time nor expertise to do all that's involved in home buying and selling themselves. So. they are calling on a team of professionals to help them make educated, informed decisions. While all members of this team add value to the equation, each plays a distinct role. Most consumers understand the role of a broker and a lender; sometimes they misunderstand the role of real estate appraisers and home inspectors. It's vital that both professionals both involved in the process. Like doctors with specialties, professional home appraisers and home inspectors can see things that their clients typically cannot.

Q. What is a home appraisal?

A. According to the Appraisal Institute, the role of the home appraiser is to "provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions. Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction."

Q. What is a home inspection?

A. A home inspection is an objective visual examination of the physical structure and systems of a home, from the roof to the foundation. Written inspection report describes the condition of the home on the day the inspection was performed. The report calls attention to systems and components that may require major or do not function properly. Typically included for inspection are the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows, and doors; the foundation, basement and visible structure.

Q. How do I make sure I have the right home inspector?

A. Ask friends or acquaintances to recommend home inspectors they have retained and were satisfied with. Ask the home inspector what items and systems are included in the scope of services, as well as what kind of written report they will receive. Ask if the inspector is a member of the American Society of Home Inspectors.

Q. What is the American Society of Home Inspectors?

A. The American Society of Home Inspectors is the oldest and leading non-profit professional association for independent home inspectors. Membership in ASHI is limited to inspectors who have met rigorous professional and educational requirement through testing and a peer review process. To avoid conflicts on interest, members subscribe to a Code of Ethics which prohibits them from inspecting a house in which they have a business interest or from repairing a house they have inspected. ASHI was the first home inspector organization in North America to discourage potential conflict of interest activities.

Q. What does ASHI do to serve the home inspection field?

A. Members subscribe to the ASHI Standards of Practice and Code of Ethics, Which are among the tools ASHI uses to promote excellence within the home inspection profession and improve inspection service. ASHI also sponsors a number of technical seminars and workshops for home inspectors throughout the year, and provide accurate and helpful consumer information to home buyers on home purchasing and home maintenance.

Q. What else is ASHI doing to promote home inspection quality?

A. ASHI is working with its fellow specialized real estate industry professionals to provide necessary assistance to achieve the objectives of the Memorandum of Understanding that supports U.S. Housing and Urban Development Secretary Andrew Cuomo's June 10, 1999, announcement of a Homebuyer Protection Initiative. HID said the initiative will improve home appraisals for more than 1 million families who purchase hoes each year with mortgages insured by the Federal Housing Administration and is designed to protect consumers from buying homes with major undetected defects.

The Memorandum of Understanding expresses the mutual intent of HUD, NAR, and MBA to make home purchasers using FHA-insured mortgages better aware of the importance and value of home inspections in the home buying process, and of the distinct purposes of an inspection and the appraisal of the home. The Memorandum of Understanding, which are in harmony with ASHI's own objectives. These objectives enable consumers to make an informed decision on the most important investment of their lives - the purchase of a home.

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For More Information Contact:

Homebuyers in Northern Illinois who wish to know more about home inspections or find qualified local home inspectors may contact the organization at:

Northern Illinois Chapter of the ASHI
209 East Butterfield Road - Suite #255
Tel: 630-782-0855 or 630-916-8373
FAX: 630-782-0856
Internet: http://www.nicashi.com

All others may contact the organization at:

American Society of Home Inspectors
932 Lee Street, Suite 101
Des Plaines, IL 60016
Tel: 800-743-2744
Internet: http://www.ashi.com