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How does a home appraisal and inspection help a home buyer?
Asked By Michael O. | 1099 views | Tips Advice | Updated 3 years ago
Answer(5)
Jason Craig
Coldwell Banker
A home appraisal and a home inspection are two separate but equally important steps that protect a buyer. An appraisal is usually required by your lender to verify the market value of the property. A licensed appraiser compares the house to recent sales and evaluates its condition to ensure the purchase price is in line with market value. If the appraisal comes in below the agreed price, it can give you leverage to renegotiate or walk away without losing your earnest money.
A home inspection, on the other hand, is ordered by the buyer to thoroughly assess the physical condition of the property. A qualified inspector examines the roof, foundation, plumbing, electrical, HVAC, appliances, and overall structure. The inspection report highlights safety issues, hidden defects and maintenance items you might not notice on a walk‑through. Armed with this information, you can negotiate repairs or credits with the seller, budget for future maintenance, or cancel the contract if the problems are serious and the seller won’t address them.
Together, the appraisal and inspection give you an objective picture of value and condition so you can make an informed decision, protect your financing and avoid unexpected expenses after closing.
A home inspection, on the other hand, is ordered by the buyer to thoroughly assess the physical condition of the property. A qualified inspector examines the roof, foundation, plumbing, electrical, HVAC, appliances, and overall structure. The inspection report highlights safety issues, hidden defects and maintenance items you might not notice on a walk‑through. Armed with this information, you can negotiate repairs or credits with the seller, budget for future maintenance, or cancel the contract if the problems are serious and the seller won’t address them.
Together, the appraisal and inspection give you an objective picture of value and condition so you can make an informed decision, protect your financing and avoid unexpected expenses after closing.
- 3 months ago
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Alfred Galvan
eXp Realty of California
Hello Michael, well if its appraisal comes in less than the purchase price that helps the buyer, not the seller, but in today's market the seller is in control of everything, feel free to contact me I will be happy to answer all your questions.
- 4 years ago
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Hector Gastelum
The Gastelum Organization
Great question Michael,
A home inspection gives you peace of mind knowing if the home has transaction-cancelling issues. The main purpose of the appraisal is to protect the bank because they pick the appraiser to protect the investment they're making on the property.
A home inspection gives you peace of mind knowing if the home has transaction-cancelling issues. The main purpose of the appraisal is to protect the bank because they pick the appraiser to protect the investment they're making on the property.
- 4 years ago
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Rafay Qamar
Compass
Home inspection is not mandatory even through in my opinion EXTREMELY important and is done during the attorney review/due diligence period. This is when you'll learn more about the condition of the home and make a decision to either proceed, back out or negotiate credits/repairs with the seller. The Appraisal is done during the mortgage contingency process and is required by the lender to make sure the value of the property is at or above the sales price. This helps a buyer to make sure theyre not over paying for the property. Hope this helps! if you have any other questions, I can be reached at 773-516-1111. I run a 25 broker team selling well over 150 million annually and do over 400+ transactions so pretty savvy when it comes to different scenarios. Good luck with your journey!
- 4 years ago
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Nancy Phander
Coldwell Banker Flanagan Realty
An inspection helps the home buyer learn about the home. A home inspector will also see if there are any major things that could be wrong with the home. Appraisal are usually required by lenders and the only time it could help the buyer is when the home does not appraise.
- 4 years ago
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