The Real Estate Browser Volume 9, Issue 11 | Page 18

18 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 9 Number 11
www.LynchburgRealEstateBrowser.com
Home Inspections and Appraisals:
Both are Important. What’s the Difference?
By Sherry Brady, Branch Manager, Summit Mortgage Corporation
The Appraisal is a separate inspection, usually
Once you find the home of your
dreams, it’s time to hire the pro-
done after the Home Inspection. An independent
fessionals who can help ensure that owning it won’t appraisal is required by the lender if you’ll be obtain-
turn into a nightmare! There are two main types of ing a loan to buy your home. The function of the
inspections that you will encounter in the home buy- appraisal is to determine the fair market value of the
ing process. The first one is a Home Inspection and home, ensuring that it’s worth what you are offering
the second is an Appraisal.
The Home Inspection is optional but highly rec-
ommended. 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 final-
to pay for it. The appraiser determines this by find-
ing 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 ameni-
ties, 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
ized, you usually have 10 days to have the inspection buy have sold for a similar price very recently. In the
done, and let the seller know if there are any repairs rare event that the home does not appraise for what
that you would require to be done before moving you’ve offered to pay for it, you can renegotiate with
forward. What does a Home Inspector do exactly? the seller and ask them to lower the price to what the
He goes into the home and looks at all major systems appraised value is.
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 sell-
er 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
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 Pit”!
If you’re ready to look for your dream home and
get the process started, Summit’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 GET MOVING!
Inspection contingency period. You can also arrange
Summit Mortgage Corporation NMLS
to have air quality tests for mold and radon during #1041, nmlsconsumeraccess.org, Equal Housing
this time. Opportunity.
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