Here’s how home appraisals and home inspections work independently.

Today I am going back to the basics and am covering the 2 main contingencies that help protect our buyers. This includes appraisals and inspections.

We have 2 different types of state contracts regarding inspections in central Florida

The first is an as-is inspection. This gives the buyer the right to cancel the contract if the inspection comes back and they are unhappy with the condition of the home.

The second is a standard contract where the buyer pre-negotiates a dollar amount for repairs prior to the inspection. Both contracts are handled similarly, aside from the prenegotionan portion of the standard contract. 

“Appraisals and inspections each serve a different purpose.”

We encourage buyers to look for major items during the inspection phase such as the roof, plumbing and electrical. Being too nit-picky, especially in this multiple offer market, can cause you to lose out on the home. 

Appraisals are the other contingency to help protect buyers. The bank is only going to loan the percentage that you've applied for on that appraisal amount. This gives you an opportunity to renegotiate that payment price and ensure you will not over pay.

This is a brief overview of the differences, but if you have more specific questions about this or any other real estate topic, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.