Appraisals and Inspections – What you need to know

Knowledge Is Power When It Comes to Appraisals and Inspections

Buyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s because high buyer demand and low housing supply are driving intense competition and leading some buyers to consider waiving those contingencies to stand out in the crowded market.

But is that the best move? Buying a home is one of the most important transactions in your lifetime, and it’s critical to keep your best interests in mind. Here’s a breakdown of what to expect from the appraisal and the inspection, and why each one can potentially save you a lot of time, money, and headaches down the road.

Home Appraisal

The home appraisal is a critical step for securing a mortgage on your home. As Home Light explains:

Knowledge Is Power When It Comes to Appraisals and Inspections | MyKCM

“. . . lenders typically require an appraisal to ensure that your loan-to-value ratio falls within their underwriting guidelines. Mortgages are secured loans where the lender uses your home as collateral in case you default on the agreed-upon payments.”

Put simply: when you apply for a mortgage, an unbiased appraisal – typically required by your lender – is the best way to verify the value of the home. That appraisal ensures the lender doesn’t loan you more than what the home is worth.

When buyers are competing like they are today, bidding wars and market conditions can push prices up. A buyer’s contract price may end up higher than the value of the home – this is known as an appraisal gap. In today’s market, it’s common for the seller to ask the buyer to make up the difference when an appraisal gap occurs. That means, as a buyer, you may need to be prepared to bring extra money to the table if you really want the home.

Home Inspection

Like the appraisal, the inspection is important because it gives an impartial evaluation of the home. While the appraisal determines the current value of the home, the inspection determines the current condition of the home. As the American Society of Home Inspectors puts it:

“Home inspections are the opportunity to discover major defects that were not apparent at a buyer’s showing. . . . Your home inspection is to help you make an informed decision about the house, including its condition.”

If there are any concerns during the inspection – an aging roof, a malfunctioning HVAC system, or any other questionable items – you have the option to discuss and negotiate any potential issues with the seller. Your real estate advisor can help you navigate this process and negotiate what, if any, repairs need to be made before the sale is finalized.

Keep in mind – home inspections are critical because they can shed light on challenges you may face as the new homeowner. Without an inspection, serious, sometimes costly issues could come as a surprise later on.

Bottom Line

Both the appraisal and the inspection are important steps in the homebuying process. They protect your best interests as a buyer by providing unbiased information about the home’s value and condition. Let’s connect so you have an expert guiding you throughout the entire process.

It is my true pleasure to  work hard for my clients and your referrals throughout Massachusetts, Rhode Island, and Cape Cod.  Please let me know what questions you may have and how I can be of the best assistance to you.

Jennifer McMorran, Realtor, SRES
New Construction & First Time Home Buyer Specialist
MA, RI, and Cape Cod & Islands Licensed Real Estate Sales Associate
New Homes Team Kensington Real Estate Brokerage
real people. real estate. 

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Though many residents of neighboring towns may be surprised, those currently living in Attleboro  won’t be shocked at this news…

Buyers from all over (especially higher priced Boston housing markets) are now seeking out Attleboro as a place to purchase a home and settle whether living a single, couple, or family lifestyle.  Attleboro’s proximity to major routes and train lines make it the perfect location for commuters when traveling North to Boston, South to Providence, or West to Marlborough.   Home prices are on rise but still affordable compared to other markets.  The energy of the downtown and continued revitalization throughout the city definitely appeal to those wanting to get in early on a growing real estate market.  Resources are being invested into schools, building, businesses, infrastructure… all of the factors that contribute to creating a great community and solid real estate investment.

IMG_7862Are you interested in moving to an energized area focused on progress?  There are charming properties close to downtown, luxury apartments near the new train station, mature established neighborhoods, beautiful  new subdivisions of single family homes, and new upscale Townhome projects all offering their own unique benefits. Attleboro truly offers homes for all lifestyles!

IMG_7961I, of course, take great pride in selling our new construction projects  – Brigham Hill Estate, Flynn Terrace, and Ides Hill Commons – but, “new” does not always appeal to everyone.   There are so many great established neighborhoods offering a variety of home styles at a variety of price points.

I’d love to help you explore all that Attleboro has to offer.  Give  call, text, or e-mail anytime and let me know if you are thinking about buying, what price range you would like to target, and general criteria for you new home (i.e. bedrooms, bathrooms, garage, yard, location, style, etc.).  I’ll do a little research and get right back to you.  Happy to give recommendations for mortgage officers and banks if you need help getting started with financing as well.

And, certainly, if you are thinking about selling – let me know!!  I have countless buyers searching for the right home in Attleboro.  Buyers are out looking and ready to buy!

Jen McMorran, RealtorJennifer McMorran, Realtor
New Construction & First Time Home Buyer Specialist
(and Antique lover & home owner!)

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