Step 8 – Inspections and Appraisals
This step is all about reducing risk. Two important milestones happen now: the home inspection and the appraisal. Each serves a different purpose, and both are critical to the success of your purchase.
Home Inspection
A licensed home inspector evaluates the structure and systems of the home—roof, foundation, plumbing, HVAC, and more. Their job is to uncover problems, not to give the home a pass or fail.
Common issues include:
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Roof damage or leaks
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Electrical safety problems
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Foundation cracks
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Plumbing leaks or mold
You’ll get a report with findings. If serious issues come up, you can request repairs, ask for seller credits, or walk away if your contract allows.
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What Can Go Wrong:​​
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The home may need costly repairs you didn’t expect
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Safety hazards could delay your closing
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You and the seller may not agree on how to handle repairs
Appraisal
Your lender hires an appraiser to confirm that the home’s value matches your agreed-upon price. The appraiser looks at market data and the property’s condition.
If the home appraises low:
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Your loan amount could be reduced
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You may need to negotiate a lower price or pay the difference out of pocket
If you’re using an FHA or VA loan, the appraiser will also check for required safety features like handrails or working smoke detectors. Missing these can delay your loan approval.
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Be Prepared
Both the inspection and appraisal can bring surprises. But they’re not deal breakers—just checkpoints to protect your investment. Keep open communication with your agent and lender, and be ready to act fast if adjustments are needed.
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