What is done first; the appraisal or inspection?
When buying or selling a home, it’s common to wonder which process should be done first – the appraisal or the inspection. In most cases, the inspection is done before the appraisal.
Home inspections are typically requested by the buyer to assess the condition of the property and identify any potential issues that may need to be addressed. This helps the buyer make an informed decision about whether or not to move forward with the purchase.
On the other hand, an appraisal is typically ordered by the lender to determine the fair market value of the property. The appraisal is important because it ensures that the lender is not lending more money than the home is actually worth.
In most cases, the inspection is done first to identify any potential issues that could affect the value of the home. This allows the buyer to negotiate with the seller or potentially walk away from the deal if the inspection reveals significant problems.
Once the inspection is complete and any necessary repairs have been made, the appraisal can be scheduled. The appraiser will assess the property based on factors such as its size, condition, location, and recent sales of comparable homes in the area.
It’s important to note that while the inspection is typically done before the appraisal, both processes are important steps in the home buying process. The inspection helps ensure that the property is in good condition, while the appraisal helps ensure that the buyer is paying a fair price for the home.
FAQs
1. Can I skip the inspection and go straight to the appraisal?
It’s not recommended to skip the inspection as it can uncover issues that may affect the value of the property.
2. Who pays for the appraisal?
Typically, the buyer pays for the appraisal as part of the closing costs.
3. How much does an appraisal cost?
The cost of an appraisal can vary depending on the size and location of the property, but it typically ranges from $300 to $500.
4. How long does an appraisal take?
An appraisal can take anywhere from a few days to a few weeks to complete, depending on the complexity of the property and the availability of the appraiser.
5. 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 need to renegotiate with the seller or come up with the difference in cash.
6. Are appraisals required for all home sales?
Appraisals are typically required for home sales that involve a mortgage lender, as the lender wants to ensure that the property is worth the amount they are lending.
7. Can I use the appraisal from a previous sale?
Appraisals are typically only valid for a certain period of time and may not be transferrable to a new sale.
8. Are appraisals and inspections the same thing?
Appraisals and inspections serve different purposes – appraisals determine the value of the property, while inspections assess the condition of the property.
9. Can I choose my own appraiser?
In most cases, the lender will choose the appraiser to ensure an impartial assessment of the property’s value.
10. What happens if the inspection reveals major issues?
If the inspection reveals major issues, the buyer may negotiate with the seller for repairs or credits, or they may choose to walk away from the deal.
11. Do I need to be present for the inspection or appraisal?
While it’s not required for the buyer to be present for the inspection or appraisal, it can be helpful to ask questions and learn more about the property.
12. How can I prepare for the appraisal?
To prepare for the appraisal, make sure the property is clean and well-maintained, and provide the appraiser with any relevant information about upgrades or improvements.