What is the difference between an Inspection and an Appraisal
If you are planning on buying a home, there are two steps that need to happen before you get to the closing table. The first is the
Inspection which will show the current condition of the home the second is the appraisal which will confirm the market value of the home.
Here is more detailed information on both:
The inspection provides information about the current condition of the property. The home inspector will check on the the condition of the roof. They will also check and test functionality of the HVAC system, plumbing, electrical and other items around the property. When they are done,they provide an inspection report. Once we review the Inspection report with you we will negoatite with seller for repairs or credits.
An appraisal provides information on the current market value of the property. If you are applying for a mortgage the lender will order the appraisal.
The appraisal helps the confirm the value of the home based on the sale price. Regardless of how much you are willing to pay, the lender makes sure they do not loan you more than what the actual home is worth. And in today’s seller market with inventory low, bidding wars are likely.
And bidding wars push home prices up. Which allow some sellers to think they can set any price they want for their house because they believe competing buyers will be willing to pay more. However, the lender will not allow the buyer to borrow more than value of the home. This helps keep home prices in check and if there is ever any confusion or discrepancy between the appraisal and the sale price. We will navigtate through the negotiaton should the appraisal not came in at Contract price.
The inspection and appraisal are critical steps when buying a home, and you do not need to manage this on your own. Contact us today so you have the expert guidance you need to navigate through the entire buying process.
Tom Wolf Team at RE/MAX Experience of Realtors serving the Greater Fort Lauderdlae Real Estate Market.
For ADA assistance, please email email@example.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information you seek through an alternate communication method.