Buying a home requires many legal steps before the seller hands over the keys to your new abode. One of the most important parts the transaction is the home inspection and appraisal.
New buyers often confuse the two and it’s understandable. However, they are separate services.
The appraiser will take measurements both inside and out, make notes about general features of the neighborhood, and confirm the property’s location.
Then the appraiser will look for “comps,” similar comparable homes that have sold in the last 90 days to compare with the home under contract. It’s this research that determines whether the price the seller is asking for is within range.
A home inspection, on the other hand, performs an entirely different service. Its job is to uncover any issues with the home, issues both the buyer and seller should be aware of.
Examples would be mold infestation, foundation and roof problems, plumbing and electrical problems.
Once the problems are uncovered, if there are any, the seller can fix them or negotiate further with the buyer on the price.
Some loan programs like FHA or VA won’t allow a home to be sold if the house has peeling paint on the home’s exterior, blatant safety hazards, (think a deck with no railings), no running water, etc.
A home inspection is optional, but a home appraisal is not. However, getting a home inspection is a wise decision because you know upfront what you have to deal with. Or, you can choose to bow out.
As a Staunton, VA title and settlement agency, we field a lot of questions about home appraisals. Here are our 5 top questions.
What Negatively Affects Home Appraisal?
As for the home itself, the construction of your home is key. The kinds of construction materials use to build a home’s foundation, updating the roof, windows, square footage, number of bathrooms and bedrooms, as well as garage and storage space. These all affect a home’s appraisal value.
What Comes First Home Appraisal or Inspection?
If you’re concerned about the home’s construction and value, you can go ahead and get a home inspection first.
Otherwise, the appraisal will usually take place first as it is needed for the mortgage loan application.
Does an Appraiser Look at Inspection Report?
Once the appraiser has completed her report, it goes to your mortgage loan officer. You are then notified as to whether the home appraised for the agreed upon price.
For a home inspection, the inspector examines the condition of a home and gives you their recommendations. If you want to be present while the inspector examines the home, you can. As mentioned above, the home inspection is optional, for your benefit only. It does not play a part in the buying process.
Who Pays for Home Inspection and Appraisal?
What Happens After Home Inspection and Appraisal?
Got any other questions about home inspection after an appraisal? Or buying a home? Don’t hesitate to reach out. Here at Lilly Title & Settlement, we’d be delighted to answer your questions!