The Real Estate Browser Volume 10, Issue 10 | Page 14

14 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 10 Number 10 www.LynchburgRealEstateBrowser.com Home Inspections and Appraisals: Both are Important. What’s the Difference? By Sherry Brady, Branch Manager, Apex Home Loans, Inc. Once you find the home of your dreams, it’s time to hire the professionals who can help ensure that owning it won’t turn into a nightmare! There are two main types of inspections that you will encounter in the home buying process. The first one is a Home Inspection and the second is an Appraisal. The Home Inspection is optional but highly recommended. If you want to have one, you’ll need to let the seller know that during your offer to buy and a Home Inspection Contingency will be written into the Purchase Agreement. Once the contract is finalized, you usually have 10 days to have the inspection done, and let the seller know if there are any repairs that you would want done before moving forward. What does a Home Inspector do exactly? He goes into the home and looks at all major systems of the home, including wiring, plumbing, HVAC, the water heater, the roof, and appliances. He will also look for water issues, grading issues, foundation issues... everything you can think of and many things you couldn’t have imagined! If the home inspection reveals any issues that you’re seriously concerned about, it is during this period that you can let the seller know and negotiate repairs. Buyers and sellers are usually able to come to agreement on any repairs, but if they aren’t, the buyer has the right to withdraw their offer and get their deposit back during this Home Inspection contingency period. You can also arrange to have air quality tests for mold and radon during this time. obtaining a loan to buy your home. The function of the appraisal is to determine the fair market value of the home, ensuring that it’s worth what you are offering to pay for it. The appraiser determines this by finding similar homes that have sold in the same area within the recent months. Ideally, they will be in the same or similar neighborhoods, with similar amenities, and be the approximately the same age, size and style home. By doing this, the appraiser can say that at least 3 homes very similar to the one you want to buy have sold for a similar price very recently. In the rare event that the home does not appraise for what you’ve offered to pay for it, you can renegotiate with the seller and ask them to lower the price to what the appraised value is. These inspections are designed to protect both you and the lender. The appraisal ensures that you are paying a fair market value for the home and, if you elect to do the home inspection, you’re doing all you can to ensure you’re not buying “The Money Pit”! If you’re ready to look for your dream home and get the process started, Apex Home Loan’s highly qualified and experienced team is ready to help you! Go online to www.LynchburgLender.com or call us at 434-237-1027 and let us help you GET MOVING! Sherry Brady, NMLS 217258 Cell [phone] [email protected] The Appraisal is a separate inspection, usually done after the Home Inspection. An independent appraisal is required by the lender if you’ll be Apex Home Loans, NMLS #2884, nmlsconsumeraccess.org, Equal Housing Opportunity. Go to LynchburgRealEstateBrowser.com or call 866-978-1792 and enter the listing ID number for more information