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Inspections v.s. Appraisals. Whats the Dif?

By
Real Estate Agent with Inactive until May. 2009

Inspections vs. Appraisals

Inspections are paid for by the buyer, generally running around $300. They help the buyer learn as much about the property as possible. The inspection report is the property of the buyer & the inspector works for the buyer.

The appraisal, on the other hand, is to protect the lender. When a lender agrees to loan 95% on the value of a property, for example, they mean 95% of the agreed upon sales price or 95% of the appraised value, whichever is less. The buyer does end up paying for the appraisal with all their other loan costs, so laws now require lenders to give buyers the results of the appraisals they pay for.

If you are buying, your Realtor® can help you find a licensed, bonded, & insured inspector (the lender will hire their own appraiser). A real estate agent can also help you understand your options should an inspection uncover defects in the property you are buying or should the appraisal come in at less then your agreed upon purchase price.

If you are selling, your Realtor® will help you understand your options when a buyer requests repairs from an inspection or when the appraised value of your home falls under the agreed upon sales price.

Comments (1)

R.E. Renée Hoover, Salesperson
Century 21 Geba Realty, Milford, PA; Licensed in PA & NYS - Milford, PA
Poconos, Pike, Wayne, Monroe Counties, PA; PA/NYS

Good points to reinforce and to point out why the assistance of a realtor's expert advice is so beneficial.

 

http://www.poconolandandhomes.com

 

Feb 17, 2009 02:10 AM