The Real Estate Browser Volume 10, Issue 10 - Page 14
14 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 10 Number 10
Home Inspections and Appraisals:
Both are Important. What’s the Difference?
By Sherry Brady, Branch Manager, Apex Home Loans, Inc.
Once you find the home
of your dreams, it’s time
to hire the professionals
who can help ensure that owning it won’t turn
into a nightmare! There are two main types of
inspections that you will encounter in the home
buying process. The first one is a Home Inspection
and the second is an Appraisal.
The Home Inspection is optional but highly
recommended. If you want to have one, you’ll
need to let the seller know that during your offer
to buy and a Home Inspection Contingency will
be written into the Purchase Agreement. Once
the contract is finalized, you usually have 10 days
to have the inspection done, and let the seller
know if there are any repairs that you would want
done before moving forward. What does a Home
Inspector do exactly? He goes into the home and
looks at all major systems of the home, including
wiring, plumbing, HVAC, the water heater, the
roof, and appliances. He will also look for
water issues, grading issues, foundation issues...
everything you can think of and many things you
couldn’t have imagined! If the home inspection
reveals any issues that you’re seriously concerned
about, it is during this period that you can let the
seller know and negotiate repairs. Buyers and
sellers are usually able to come to agreement on any
repairs, but if they aren’t, the buyer has the right
to withdraw their offer and get their deposit back
during this Home Inspection contingency period.
You can also arrange to have air quality tests for
mold and radon during this time.
obtaining a loan to buy your home. The function of
the appraisal is to determine the fair market value
of the home, ensuring that it’s worth what you are
offering to pay for it. The appraiser determines this
by finding similar homes that have sold in the same
area within the recent months. Ideally, they will be
in the same or similar neighborhoods, with similar
amenities, and be the approximately the same age,
size and style home. By doing this, the appraiser
can say that at least 3 homes very similar to the one
you want to buy have sold for a similar price very
recently. In the rare event that the home does
not appraise for what you’ve offered to pay for it,
you can renegotiate with the seller and ask them to
lower the price to what the appraised value is.
These inspections are designed to protect both you
and the lender. The appraisal ensures that you are
paying a fair market value for the home and, if you
elect to do the home inspection, you’re doing all
you can to ensure you’re not buying “The Money
If you’re ready to look for your dream home and
get the process started, Apex Home Loan’s highly
qualified and experienced team is ready to help you!
Go online to www.LynchburgLender.com or call us
at 434-237-1027 and let us help you
Sherry Brady, NMLS 217258
Cell (434) 238-8984
The Appraisal is a separate inspection, usually
done after the Home Inspection. An independent
appraisal is required by the lender if you’ll be
Apex Home Loans, NMLS #2884, nmlsconsumeraccess.org, Equal Housing Opportunity.
Go to LynchburgRealEstateBrowser.com or call 866-978-1792 and enter the listing ID number for more information