Keeping Current Matters June 29, 2024
Buyer
When you decide to buy your first home, you may come across a number of terms and conditions 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 explainer of each one and what they mean for you as a homebuyer.
Once you’re under contract on a home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear 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.”
If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and 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. Your real estate agent will be your advocate and negotiate with the seller for you.
While the inspection tells you about the current state of the house, an appraisal gives you its value. Bank rate 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 fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.
And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted real estate professional will help you navigate any additional negotiations to try to close the gap.
The inspection and the appraisal are different but equally important steps when buying a home – and you don’t need to manage them by yourself. Let’s connect today so you have expert guidance from start to finish.
Stay up to date on the latest real estate trends.
Lifestyle
June 22, 2025
While anyone with a fence surrounding their property can let their dogs roam free without the fear of them running away (or worse), those without property pet security… Read more
Buyer
June 22, 2025
Mortgage rates continued to inch down in the latest Primary Mortgage Market Survey published by Freddie Mac (OTCQB: FMCC).
Buyer
June 22, 2025
California recorded 254,190 closed escrow sales of existing, single-family detached homes in May, according to data from the California Association of Realtors (CAR).
Buyer
June 21, 2025
In welcome news for house hunters, the domestic housing market is beginning to show signs of becoming more buyer-friendly, with cooling prices and a growing number of … Read more
Seller
June 21, 2025
It’s hard to let go of a 3% mortgage rate.
Lifestyle
June 21, 2025
This month marks the official start of summer, so if you haven't already solidified your summer travel itinerary, you need to get on it, pronto!
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today