Newbies - What's an Inspection And/Or an Appraisal?

When you decide to buy your first home, you will definitely come across a number of terms & language 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 explanation of each one and what they mean for you as a Newbie homebuyer.

Home Inspection ~

Once you’re under contract, aka in escrow, on a home you’d like to buy, getting an inspection is a super important part of the process. An inspection gives you a pretty good 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.” The LARGEST! 

If anything is questionable in the inspection process – like the age of the roof, the state of mechanical systems, or just about anything else – you have the opportunity to discuss and still 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. We will 100% will be your advocate & negotiate with the seller for you! If you're not happy with the Seller response, you have some options.

FYI, all 3 of us ... Myself, Leslie, and Jennifer .... have great home inspectors that we trust!

Home Appraisal ~

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 buy it, the appraisal protects you from overpaying and the bank from lending you more than the home is worth. Well, you could still overpay, that's an option as well.

And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, we will be the ones that help you navigate any additional negotiations to try to close the gap. That's what we do.

Bottom Line ~

The inspection and the appraisal are different but are equally important steps when buying a home – and you don’t need to manage them by yourself. Connect with us today so you have expert guidance from start to finish. We definitely ARE the experts!