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Inspection & Appraisals

Author: Mlive | February 18, 2020

Inspections & Appraisals (Buying)

Before you sign on the dotted line for your new home, you are going to want to know exactly what you are buying. The home inspection and appraisal are designed to evaluate your prospective house to see if any issues could affect the price you are willing to pay. While these two processes are similar, they accomplish different goals. Get Movin Realty has resources and tips for buyers to ensure the home inspection and appraisal process goes as smoothly as possible.

Having the House Inspected

What to Expect:

Before you agree to purchase a house, it’s common to request a home inspection. Your financial lender will pay for an inspector to come to the house and evaluate its condition. This will uncover any problems that may cause unexpected expenses down the road. Some of the most important aspects of the inspection include the roof, foundation, plumbing, and electrical systems because any issues with them could significantly impact your safety and your bank account.

Tips:

On the day of the inspection, it’s a good idea for you to tag along. Dress appropriately, because you may encounter dust and dirt. Expect the inspection to take a few hours and up to a whole morning or afternoon depending on the size of the property and extent of problems found. As you move around the house, don’t be afraid to bring up any questions or concerns you may have. Bring a notebook and pencil to jot down problems and any recommendations the inspector makes so you remember them later. If everything looks good, you can move forward with the deal and start the appraisal.

Having the House Appraised

What to Expect:

An appraisal is an assessment of how much your desired property is worth based on its size, features, and condition. The surrounding market can also impact a home’s worth. This process is integral in ensuring that the asking price is fair and reasonable. The appraisal will be conducted by an unbiased third party that is usually selected by the financial lender of the buyer. The appraiser will thoroughly review the house, but this isn’t usually as comprehensive as a home inspection. Afterward, the appraiser will write up a report that takes into account what similar houses in the area have sold for and how the overall real estate market is trending. All of this data will be incorporated into the final value.

Tips:

The seller will typically not learn about the value because the appraiser will be chosen and paid for by the buyer and their financial lender. However, if the appraised value comes back significantly lower than the buyer’s mortgage amount, you may have to disclose the information. In that event, you will likely reduce the amount of your offer or make a larger down payment to make up the difference.

Have Peace of Mind with Your Decision

The inspection and appraisal process is all about making sure you are comfortable with the condition and price of your potential new home. To complete these tasks, you will need a trusted inspector and appraiser in the area. Get Movin Realty makes this easy with our list of providers that we recommend. For more home inspection tips for buyers, check out our Buyer’s Guide for a comprehensive overview. If you’re ready to buy with Get Movin Realty, create an account today.