Which comes first; appraisal or inspection?

Which comes first; appraisal or inspection?

When it comes to the homebuying process, there is often confusion about whether an appraisal or inspection should come first. The answer to this question is simple: an inspection typically comes first, followed by an appraisal.

An inspection is a thorough examination of a property’s condition, typically conducted by a qualified home inspector. This is an important step for buyers to understand the state of the property they are purchasing and if there are any issues that need to be addressed.

On the other hand, an appraisal is an estimate of the property’s market value, conducted by a licensed appraiser. This is necessary for lenders to ensure that the property is worth the loan amount being requested.

There are several reasons why an inspection should come before an appraisal in the homebuying process. Firstly, an inspection helps to uncover any potential issues with the property that may affect its value. This information is crucial for buyers to make informed decisions about their purchase.

Secondly, if any major issues are discovered during the inspection, buyers may choose to renegotiate the purchase price or request repairs before moving forward with the appraisal. This can save time and money in the long run.

Finally, an appraisal is based on the condition of the property, among other factors. Having a clear understanding of the property’s condition through an inspection can help the appraiser provide a more accurate valuation.

In summary, an inspection should come first in the homebuying process, followed by an appraisal. By prioritizing an inspection before an appraisal, buyers can make informed decisions and potentially avoid surprises down the road.

FAQs:

1. Can I skip the inspection and go straight to the appraisal?

It is highly recommended not to skip the inspection as it provides valuable information about the property’s condition.

2. Who typically pays for the appraisal and inspection?

In most cases, the buyer is responsible for paying for both the appraisal and inspection.

3. How long does an inspection usually take?

An inspection can take a few hours, depending on the size and condition of the property.

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

If the appraisal comes in lower, buyers may need to renegotiate the purchase price with the seller or come up with additional funds to cover the difference.

5. Can a home appraisal affect the sale of a property?

Yes, a low appraisal can potentially derail a sale if the buyer is unwilling or unable to cover the shortfall.

6. Is an inspection required by law?

An inspection is not required by law, but it is highly recommended for buyers to protect their investment.

7. What does an appraiser look for during an appraisal?

An appraiser looks at the property’s condition, size, location, amenities, and recent sales of comparable properties.

8. How long does an appraisal usually take?

An appraisal can take a few days to a week, depending on the availability of the appraiser and the complexity of the property.

9. Can an appraisal be waived?

In some cases, such as a cash purchase, an appraisal may be waived, but it is rare for traditional mortgage transactions.

10. Can I attend the inspection and appraisal?

Buyers are typically encouraged to attend the inspection to ask questions and learn about the property. However, it is less common for buyers to attend the appraisal.

11. Can I choose my own inspector and appraiser?

Buyers can often choose their own inspector, but the lender typically selects the appraiser to maintain objectivity.

12. How often should I schedule a home inspection?

It is recommended to schedule a home inspection for every property you are considering purchasing to ensure you are making an informed decision.

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