Step 4: Inspection & Appraisal
1. Schedule Home Inspection
After your offer is accepted, schedule a home inspection with a licensed home inspector. The inspector will thoroughly evaluate the property's condition, identifying any existing or potential issues such as structural problems, electrical issues, plumbing issues, and more.
2. Attend Inspection
Attend the home inspection to observe the inspector's findings firsthand. This is an opportunity to ask questions, learn about the property's maintenance needs, and gain insight into any necessary repairs or improvements.
3. Review Inspection Report
Once the inspection is complete, review the inspection report provided by the inspector. The report will detail any issues found during the inspection, including their severity and recommendations for repairs or further evaluation.
4. Negotiate Repairs
Based on the inspection report, you may choose to negotiate with the seller to address any significant issues discovered during the inspection. Your real estate agent can help facilitate these negotiations and ensure your interests are represented.
5. Schedule Appraisal
Simultaneously with the home inspection, your lender will arrange for an appraisal of the property. The appraisal is conducted by a licensed appraiser to determine the fair market value of the property based on its condition, location, and comparable sales in the area.
6. Await Appraisal Report
Once the appraisal is complete, you'll receive an appraisal report outlining the appraiser's findings and the property's appraised value. The appraised value will play a crucial role in determining the amount of financing your lender is willing to provide.
7. Address Appraisal Issues
If the property appraises for less than the agreed-upon purchase price, you may need to address appraisal issues. This could involve renegotiating the purchase price with the seller, providing additional funds to cover the shortfall, or canceling the transaction.
8. Finalize Repairs and Adjustments
After negotiations and any necessary repairs or adjustments are made, you'll proceed with finalizing the purchase agreement. Ensure that all repairs are completed to your satisfaction and that any agreed-upon adjustments are reflected in the final contract.
