In today’s real estate market, buyers often have questions about the importance of inspections and home appraisals. Due to the high buyer demand and low housing inventory, its leading some buyers to considering waiving these contingencies to make their offer stand out amongst the competitors.

Home inspections are important because they allow the buyers to get an impartial evaluation of the home for a licensed home inspector. The inspection determines the overall condition of the home. In this case, this is the buyer’s opportunity to reveal any major defects that may not have been apparent at first glance. Next time you think about making an offer, you may not want to waive your inspections. Home inspections are critical because they can reveal challenges that you may face as the new homeowner. Without an inspection, there is a potential for some costly issues to arise later.

The appraisal on the other hand is a critical step for securing a mortgage. In today’s competitive market, there are still bidding wars and market conditions that are pushing home prices up. In some cases, a buyers agreed upon contract price may end up higher than the actual value of the home. This is known as an appraisal gap. Now a days, it is common for the seller to ask the buyer to make up the difference when an appraisal gap arises. Make sure that you are prepared to bring extra money to the table if you want the home.

Appraisals and home inspections are important steps to the home buying process. Both will protect your best interests as a buyer. As always, its crucial to work with a trusted real estate advisor so you have an expert to guide you throughout the entire process. Call or email our office today, we would love to assist you in the home buying process!

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