The Real Estate Browser Volume 9, Issue 4

14 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 9 Number 4 www.LynchburgRealEstateBrowser.com Home Inspections and Appraisals: Both are Important. What’s the Difference? By Sherry Brady, Branch Manager, Summit Mortgage Corporation Once you find the home of your dreams, it’s time to hire the profes- sionals 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 choose to do a home inspection, you need to let the seller know that during your offer to buy and it will be written into the Purchase Agreement. Once the con- tract is finalized, you usually have 10 days to hire a home inspector, have the inspection done. A home inspector will come into the house and go through every nook and cranny of the home looking at all major systems of the home, includ- ing wiring, plumbing, HVAC, the water heater, the roof, and appliances. They 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. The Appraisal is a separate inspection, usually done after the Home Inspection. An independent appraisal is required by the lender if you’ll be 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 simi- lar 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 rene- gotiate 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 inspections, you’re doing all you can to ensure you’re not buy- ing “The Money Pit”! If you’re ready to look for your dream home and get the process started, Summit’s highly qual- ified 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! Summit Mortgage Corporation NMLS #1041, nmlsconsumeraccess.org, Equal Housing Opportunity.

The Real Estate Browser Volume 9, Issue 4 | Page 14