Is an appraisal before or after inspection?

The question of whether an appraisal should be done before or after an inspection is one that often confuses home buyers and sellers. Both appraisals and inspections are important steps in the process of buying or selling a home, but they serve different purposes and are typically done at different times in the transaction.

The appraisal typically comes before the inspection. This is because the appraisal is generally required by a lender before approving a mortgage loan. The lender wants to ensure that the home is worth the amount they are lending, so they will order an appraisal to assess the property’s value. On the other hand, a home inspection is usually done after the appraisal, as it is more focused on the physical condition of the property rather than its market value.

FAQs:

1. What is the purpose of an appraisal?

An appraisal is an assessment of the property’s market value conducted by a professional appraiser. It helps the lender determine if the property is worth the amount of money they are lending.

2. What is the purpose of a home inspection?

A home inspection is a comprehensive examination of the property’s condition, including the structure, systems, and overall quality. It helps the buyer identify any potential issues with the property before closing the deal.

3. Who orders the appraisal?

The lender typically orders the appraisal to ensure that the property’s value supports the loan amount.

4. Who pays for the appraisal?

In most cases, the buyer is responsible for paying for the appraisal as part of the closing costs.

5. How long does an appraisal take?

The appraisal process usually takes a few days to a week, depending on various factors such as the property’s location and complexity.

6. What happens if the appraisal comes in lower than the purchase price?

If the appraisal comes in lower than the purchase price, the buyer may have to renegotiate with the seller or come up with additional funds to cover the shortfall.

7. Can the buyer be present during the appraisal?

While it is not necessary for the buyer to be present during the appraisal, they can request to be there to provide any information about the property that may impact its value.

8. What is included in a home inspection report?

A home inspection report typically includes detailed findings on the property’s structure, systems, and any potential issues that may need to be addressed.

9. How long does a home inspection take?

A home inspection can take anywhere from 2-4 hours, depending on the size and condition of the property.

10. Can the buyer back out of the deal based on the home inspection?

If the home inspection reveals significant issues with the property, the buyer may have the option to back out of the deal or negotiate repairs with the seller.

11. What if the appraisal and inspection have conflicting findings?

If the appraisal and inspection have conflicting findings, the buyer may need to reassess their decision and potentially renegotiate with the seller based on the new information.

12. Are there instances where an appraisal may be done after the inspection?

In some cases, such as when the lender requires additional information on the property, an appraisal may be done after the inspection. However, this is not the typical order of events in a real estate transaction.

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