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 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 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,, Equal Housing this time. Opportunity.