Home Inspections & Appraisals

Home Inspections & Appraisals: What Every Buyer Should Know

Buying a home is exciting, but before you get too comfortable picking out furniture, there are some important steps to take like conducting inspections and appraisals. Two of the biggest ones are home inspections and appraisals. These help make sure you’re making a smart investment and not walking into any surprises. Let’s break it all down so you know what to expect!

Why Are Home Inspections Important?

A home may look perfect, but there could be hidden problems that aren’t easy to see. That’s why buyers often schedule home inspections before closing the deal. A professional inspector will check the home’s condition and look for any issues that could cause problems later.

Types of Home Inspections

Depending on the home’s age, location, and condition, you might need more than one type of inspection. Here are some of the most common ones:

🏠 General Home Inspection

This is the most common inspection. The inspector looks at the major systems of the home, including:
✅ Roof and attic
✅ Plumbing and water systems
✅ Electrical wiring
✅ Heating and air conditioning (HVAC)
✅ Foundation and structure
✅ Windows and doors

After the inspection, you’ll receive a report that lists any problems found. If there are serious issues, you may be able to negotiate repairs with the seller.

🐜 Termite and Pest Inspection

This inspection checks for wood-destroying insects, like termites, that could damage the home. If pests are found, the seller may need to pay for treatment before the sale can go through.

💧 Mold and Water Damage Inspection

If there are signs of water damage, a specialist can test for mold. Mold can cause serious health problems and be expensive to remove, so it’s important to catch it early.

🔥 Radon and Gas Inspection

Radon is a dangerous gas that can build up in homes. It’s invisible and has no smell, but too much of it can be harmful. Some areas have higher radon levels, so testing is a good idea if you’re buying in one of these locations.

🚰 Well and Septic Inspection

If the home has a well for water or a septic system instead of a city sewer, you’ll need a special inspection. These tests make sure the water is clean and the septic system is working properly.

The Appraisal Process: Why It’s Necessary

Unlike an inspection, which checks a home’s condition, an appraisal determines the home’s value. If you’re getting a mortgage, the lender will require an appraisal before approving your loan.

How Does an Appraisal Work?

A licensed appraiser will visit the home and look at:
🏡 The size and condition of the home
📍 The location and neighborhood
📊 Recent sales of similar homes nearby

After gathering this information, the appraiser will give the lender an official report with the home’s estimated value.

What Happens If the Appraisal Is Too Low?

Sometimes, the appraised value comes in lower than the agreed purchase price. When this happens, the lender might not approve the full loan amount. Here are a few ways to handle it:

1️⃣ Negotiate with the seller – Ask the seller to lower the price to match the appraised value.
2️⃣ Pay the difference – If you have extra cash, you can cover the gap yourself.
3️⃣ Challenge the appraisal – If you think the appraiser made a mistake, you can request a second opinion.
4️⃣ Walk away – If your contract has an appraisal contingency, you may be able to cancel the deal without losing your earnest money.

Both inspections and appraisals are important parts of buying a home. Inspections help you understand the home’s condition, while the appraisal makes sure you’re not overpaying.

By paying close attention to these steps, you’ll be in a better position to make a smart and confident home purchase. If you have any questions or need guidance, reach out to a trusted real estate professional to help you through the process! 🏡🔑

Now that you know all about the eighth step in the home buying process, let’s move on to #9! To see the whole 10 step process check out our blog article: The 10 Steps to Buying a Home.

If you enjoyed Conducting Inspections and Appraisals, make sure to check out ERA Liberty’s other blog articles. We blog about all things real estate, local eats, and happenings in and around our community.

For all your home buying or selling needs, ERA Liberty Realty is always there for you! We are here to help you no matter where you are, we have agents licensed in West Virginia, Virginia, Maryland, or Washington DC! Reach out today to get your real estate journey started!