×

Go Back

Advice Topics

Top Contributors (View All)

Find a Top Real Estate Agent Near You

Search Now

How does a home appraisal and inspection help a home buyer?

Asked By Michael O. | 995 views | Tips Advice | 4 years ago
Answer(5)
Sort By:
profile img
Pro
116 Answers
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.
profile img
Rising Star
16 Answers
Alfred Galvan

eXp Realty of California

(38)

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.

Are you ready to find a top agent near you?

Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.

Search
profile img
Rising Star
12 Answers
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.
profile img
Novice
6 Answers
Rafay Qamar

Compass

(686)

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!
profile img
Novice
5 Answers
Nancy Phander

Coldwell Banker Flanagan Realty

(23)

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.

Related Questions

Search for Agents by Top U.S Cities
Search for Agents by States
Search for Company by States