Inspections & Appraisal

After the buyer and seller have come to an agreement on purchase terms the buyer has a certain period of time to complete all inspections and secure their financing. Below each of these steps is explained in more detail.

Inspections

After your offer is accepted by the seller you have a certain period of time to conduct all of the inspections you wish (buyer pays for these). For your own safety, and to make sure you’re getting your money’s worth in the home you choose, using a professional home inspector is highly recommended. A home inspector will check a home’s plumbing, heating and cooling, electrical systems, and look for structural problems, like a damp or leaky basement.

Usually you call an inspector immediately after your offer has been accepted. However, before you sign any written offer, make sure (or have your attorney make sure) that it includes an inspection clause or other language which says that your purchase obligation is contingent on the findings of a professional home inspector.

Your home cannot “pass” or “fail” an inspection, and your inspector will not tell you whether he or she thinks the home is worth the money you are offering. The inspector’s job is to make you aware of repairs that are recommended or necessary. A seller may be willing to renegotiate a price to accommodate needed repairs, or you may decide that the home will take too much work and money. A professional inspection will help you make a clear-headed decision.

In choosing a home inspector, consider one that has been certified as a qualified and experienced member by a trade association. Your real estate agent may refer you to qualified inspectors in your area.

In addition to the overall inspection, you may wish to have separate tests conducted to check for termites, or the presence of radon gas. Talk to your real estate agent for information about these tests, and companies in the area that perform them.

Appraisal

When you are getting ready to buy a home, knowing how much to offer is a big question mark. A knowledgeable Realtor is a good source of information.

Realtors will commonly prepare a CMA (Competitive Market Analysis). The CMA compares your home with similar properties in the area that are currently listed as well as those that have recently sold and sometimes with those that have expired from the market. This report will help you understand both what you can reasonably list your property for as well as what the expected sale price will be.

An appraisal at this stage of the homebuying purchase happens to ensure the lender that the property you wish to buy is actually worth what you seek to borrow (no lender would lend more money than a property is worth!).