The Difference Between an Inspection and an Appraisal
For Buyers Laura Miller Edwards Realty Group July 3, 2024
For Buyers Laura Miller Edwards Realty Group July 3, 2024
When you decide to buy your first home, you may come across a number of terms and conditions you’re not familiar with. While you may have a general idea of what an inspection is, maybe you’re not sure why you need one or how it’s different from an appraisal. To keep it simple, here’s an explainer of each one and what they mean for you as a homebuyer.
Once you’re under contract on a home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear idea of the safety and overall condition of the home – which is important for such a big transaction. As a recent Realtor.com article explains:
“A home inspection is something that protects your financial interest in what will likely be the largest purchase you make in your life—one in which you need as much information as possible.”
If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. And don’t worry – you don’t have to go through that process alone. Your real estate agent will be your advocate and negotiate with the seller for you.
While the inspection tells you about the current state of the house, an appraisal gives you its value. Bankrate explains:
“When buying or selling a home, an appraisal verifies that the sale price of the home is in line with fair market value. This ensures the homebuyer doesn’t pay more than the home is worth, and the mortgage lender doesn’t lend more than it is worth.”
Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.
And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted real estate professional will help you navigate any additional negotiations to try to close the gap.
The inspection and the appraisal are different but equally important steps when buying a home – and you don’t need to manage them by yourself. Let’s connect today so you have expert guidance from start to finish.
This blog post previously appeared on https://www.simplifyingthemarket.com/en/2024/06/27/the-difference-between-an-inspection-and-an-appraisal?a=106260-312309902871c1f0d820820f58bf8fde. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Stay up to date on the latest real estate trends.
Mulit-Generational Living
If the costs of childcare and housing together have made buying feel out of reach right now, it may be worth exploring creative options like buying a home with your lo… Read more
For Sellers
While renting can be a great choice for the right person with the right house, if you’re only considering it because your listing didn’t get traction, there may be a b… Read more
Community Information
Acworth, the Lake City, offers buyers a combination of access to the water, proximity to a historic downtown, and a location that still connects well to the rest of Co… Read more
First Time Home Buyers
Buying your first home is exciting. Here’s a list of 3 things you should focus on to help you get started.
For Sellers
If your house has been sitting on the market without any bites, you’re not the only one. But it's also not the end of the road.
Mortgage Rates
A lot of buyers are treating mortgage rates in the 5s like some kind of magic number. But here’s the part most home buyers don’t actually run the math on.
Community Information
If you’re thinking about moving to Smyrna, GA, you’re not alone.
Selling Tips
Home sellers who are making their moves happen right now all have one thing in common: they’ve adjusted their strategy to match today’s market.
Pricing
There’s one decision you're going to make when you sell that determines whether your house sells quickly.
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact us today.
