What to Expect With Home Inspections and Appraisal
Once your offer is accepted on a home, you’ll have a few weeks to conduct a full home inspection and appraisal before closing on the house. Inspections are vital since they’ll determine any major damage to the home that needs repairs, while appraisals are important for mortgage approvals to confirm the house is worth the price.
So, does a home inspection or appraisal come first? Typically, even though a home inspection isn't always required, it's a good idea to have the inspection done before your appraisal. Why? Well, if the inspection comes back with major, expensive issues, you may not want to go through with purchasing the home. Having the inspection done first can save you money on an appraisal, which can get pricey. If you were to get the appraisal done first only to find out during the inspection you don't want the home, you might be out $500 or more.
Understanding the process and costs of a home inspections and appraisals can be tricky, but is important since they are key pieces in your home buying journey.
So What Exactly Is a Home Appraisal?
A home appraisal is an estimate of your property’s value, based on factors like age, condition, building materials, neighborhood and sales of comparable nearby homes. Using these and other factors, the appraiser provides an analysis and conclusions about your property's value.
The home appraisal report usually includes: