What Happens at the Home Inspection and the Appraisal?

They're two different things. The inspection is for you, and it checks the condition of the home. The appraisal is for your lender, and it checks the value.

I'm a Home Buying Realtor in Franklin, WI, and these two steps worry buyers more than almost any other. Here's what each one is and what a bad result can mean.

You hire a licensed inspector to look at the home. They check things like the roof, the structure, the heating and cooling, the plumbing, and the electrical. It usually takes a few hours, and I like you to be there if you can. You can ask questions as you go, and seeing the home with the inspector teaches you a lot.

You get a written report. Every home has some items on it. That's normal. What matters is which ones are big, which are small, and which you want the seller to deal with.

Your contract has a deadline for telling the seller in writing about any problems you want fixed. We go through the report together and decide what to ask for. You can ask the seller to repair something, give you a credit, or lower the price. Or you can accept the home as it is. If the problems are big, the contract may let you walk away.

The seller doesn't have to agree to everything, so we talk through what's worth asking for.

Your lender orders the appraisal, and an appraiser estimates what the home is worth. You pay for it, but you don't hire the appraiser, and you don't need to do anything.

The lender uses that number to decide how much it will lend. In most cases the appraisal comes in close to the price. Sometimes it doesn't.

A low appraisal doesn't automatically end the deal. Depending on your contract, you might ask the seller to lower the price, pay the difference yourself, or ask for another look. Some buyers walk away. Your lender and I will go over the choices with you.

• Inspection results and appraisal results are different, and one doesn't predict the other.
• Deadlines matter. Don't wait to schedule the inspection.
• Ask your lender early how a low appraisal would affect you.

If you're getting close to making an offer, ask your agent how the inspection and appraisal deadlines work in your contract.

You pay the inspector, so ask for the price up front. Ask your lender what the appraisal costs and when it's due. Neither step needs to be scary. Both exist to protect you, and the lender too, and knowing the dates ahead of time takes most of the stress out.

If you're in Franklin and want to know what to expect, call me. I'm a residential Realtor in Franklin, WI, with a real estate agency behind me, Realty Experts LLC. I answer the phone, and I'll go through every step. No pressure.

See how I help buyers in Franklin. I'm Rich Barnes, and my number is 414-899-8146.