Wednesday, January 27, 2016

Home Inspection vs Home Appraisal

Buying a house at the Lake of the Ozarks is a big undertaking. A successful transaction requires the cooperation of several different parties: the buyers, the buyers' agent, the sellers, the sellers' agent, the mortgage lender, the title company, and more.

There are also several steps that must be completed before closing. Two vitally important steps are the home inspection and the home appraisal. While they serve very different purposes, some buyers get these two steps confused. This week, your real estate agents in Sunrise Beach are here to help you understand their differences.

Home Appraisal

The appraisal usually takes place before the inspection. To put it simply, the home appraisal is the process wherein an appraiser evaluates the house to determine its current market value. This is a critical part of the home buying process, because lenders typically will not authorize loan amounts greater than the official appraisal value of the home. As the buyer, you will generally be responsible for covering the cost of the home appraisal.

Your appraisal value will be the sum of several different factors, such as the location, the local real estate market, the number of rooms, the square footage, the quality of the materials and construction used, and the overall condition of the property. While houses rarely sell for the exact appraisal amount, the appraisal can serve as a valuable guideline for both the buyers and the lender.

Home Inspection

The home inspection typically happens a little bit later in the process, but it is still absolutely essential. During this process, a certified home inspector will critically evaluate the entire property to determine its condition. A proper home inspection is incredibly thorough, encompassing the foundation, roof, HVAC system, deck, electrical system, plumbing system, fireplaces, insulation and ventilation, and more. As with the home appraisal, the buyer is generally responsible for paying for the home inspection.

The home inspection can be a valuable eye-opener for the buyer. In many cases, we recommend that our buyers include a "contingent upon inspection" clause in their initial offer. This allows them to change or cancel their initial offer depending on the information revealed in the home inspection. If the inspection reveals that some aspect of the property is in need of major repair, the the cost of the repair may be negotiated into the contract, or the buyer may be able to back out entirely.

Eagle's Nest Realty Is Here To Guide You

There are a lot of things to consider when choosing your new home in Sunrise Beach MO. The team at Eagle's Nest Realty will be here to guide you along every step of the way, helping you evaluate each new piece of information to make smart, well-informed decisions. Visit our website to learn more about our real estate services at the Lake of the Ozarks!

Eagle's Nest Realty, Inc.                                               Like Us On Facebook
Bill & Sky Johnson                                                             Follow Us On Twitter
33431 Evanston Road                                                          Find Us On LinkedIn

Sunrise Beach, MO  65079                                                     +1 Us On Google+

No comments:

Post a Comment