The process of buying or selling a house can be an overwhelming and confusing set of hurdles if you haven’t experienced it in the past. We’re going to help prepare you for part of that journey by looking into 4 things you need to know about appraisals and inspections in Riverside:
After an offer is accepted on a home, one of the first major steps is completing an appraisal to determine the general value of the home.
Fittingly enough, this value is called the appraised value – not to be confused with the market value, which is the amount of money a buyer is willing to pay for a property. If the buyer is utilizing a mortgage lender to secure financing, the lender will select and hire a qualified appraiser to visit the property. Otherwise, the buyer will need to do so on their own.
The appraiser does a floor-to-ceiling evaluation of both the interior and exterior of the property to note any available features and the condition of the property as a whole. They then carefully consider the value of the property based on these findings combined with current market trends as well as other neighborhood comparable sales in the area.
What you’re left with is a number that acts as a very general guideline of the value of the home relative to its location, features, condition, and market health.
On the other end of the home evaluation spectrum, an inspection is conducted by a licensed home inspector to also evaluate the condition of the operational parts of the home.
The second objective of any worthwhile home inspection is to go through each of these parts of the home with the buyer and educate them on not only how they work but some best practices to run the home as efficiently as possible. A home inspector is trained to identify potential points of failure in the home and ensure that they are in working order prior to the sale concluding.
Other specialized inspections can be done, such as termite and mold inspections or radon testing.
Ways to Prepare for Both
As either a buyer or seller, there are some steps you can take to get ready for appraisals and inspections.
As the seller, the biggest thing you can do is make sure all areas of your home are easily accessible and there is not a bunch of clutter complicating the evaluation process. Keeping things neat and tidy is something that should be happening when selling your home anyway, so this is unlikely to be a major concern.
As the buyer, looking at reviews of home inspectors and then selecting the right one for you will get you ready after your appraisal comes back.
Why You Should Bother with Them
The very short way of explaining why you should bother with both the appraisal and home inspection is that if the buyer is being financed by a mortgage lender they will be required.
The appraisal helps a lender determine if the investment in the property by way of loaning the money to the buyer is a reasonable venture. If the appraisal value comes back lower than the agreed sales price of the home, the lender may request that the buyer make up the difference or outright reject the loan.
The home inspection acts as a safe introduction to all parts of the home and is always a good idea despite the circumstances of the property’s sale.