Home Appraisals and Inspections – Knowledge Is Power
Know Your Negotiation Power When It Comes to Home Appraisals and Inspections In Metro Detroit MI
Knowledge Is Power When It Comes to Home Appraisals and Inspections
Buyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s because high buyer demand and low housing supply are driving intense competition. Furthermore, this competition is leading some buyers to consider waiving those contingencies to stand out in the crowded market.
But is that the best move?
Buying a home is one of the most important transactions in your lifetime, and it’s critical to keep your best interests in mind. Here’s a breakdown of what to expect from the appraisal and the inspection. Also, it’s why each one can potentially save you a lot of time, money, and headaches down the road.
“. . . lenders typically require an appraisal to ensure that your loan-to-value ratio falls within their underwriting guidelines. Mortgages are secured loans where the lender uses your home as collateral in case you default on the agreed-upon payments.”
Home Appraisal Put Simply
when you apply for a mortgage, an unbiased appraisal – typically required by your lender – is the best way to verify the value of the home. That appraisal ensures the lender doesn’t loan you more than what the home is worth.
The Issue with Bidding Wars
When buyers are competing like they are today, bidding wars and market conditions can push prices up. A buyer’s contract price may end up higher than the value of the home – this is known as an appraisal gap. In today’s market, it’s common for the seller to ask the buyer to make up the difference when an appraisal gap occurs. That means, as a buyer, you may need to be prepared to bring extra money to the table if you really want the home. I recommend having a long discussion with agents as you work through the hiring process their understanding of Price Drive vs Value-Driven Approach before you submit an offer. This will help you save money and determine who you should be working with.
Like the appraisal, the inspection is important because it gives an impartial evaluation of the home. While the appraisal determines the current value of the home, the inspection determines the current condition of the home. As the American Society of Home Inspectors puts it:
“Home inspections are the opportunity to discover major defects that were not apparent at a buyer’s showing. . . . Your home inspection is to help you make an informed decision about the house, including its condition.”
Home Inspections Concerns
If there are any concerns during the inspection – an aging roof, a malfunctioning HVAC system, or any other questionable items – you have the option to discuss and negotiate any potential issues with the seller. Your real estate advisor can help you navigate this process and negotiate what, if any, repairs need to be made before the sale is finalized.
Keep in mind – home inspections are critical because they can shed light on challenges you may face as the new homeowner. Without an inspection, serious, sometimes costly issues could come as a surprise later on.
Get Your Home Buying & Selling Strategies in our E-Guide
Don’t muddle through the home buying and selling process. Buying a new home is a dream for all of us, and it’s an emotional and stressful process; it also involves the most significant financial transaction you probably will make in your lifetime.
Your Buyer guide
Your guide will help you buy your ideal home with confidence and save thousands in the process. You will be working with Selling Agents, loan officers, underwriters, title companies…1. Do you know the lingo? 2. What you should avoid after applying for your mortgage 3. Know your Negotiation Power 4. Get to know how agents think and handle negotiations if you find yourself in a multiple offer situation? 5. Read What they Right. Find out the answer by downloading your PDF E-book Buying Guide.
Your Seller Guide
Your guide will help you work through the selling process using the latest in high-tech market tools. Our goal is to separate your home from the competition, keep them focused on your house. The selling Guide is very detailed and works through step by step, so your guaranteed Top Dollar for your home.
Home Appraisals and Inspections Bottom Line
Both the appraisal and the inspection are important steps in the homebuying process. They protect your best interests as a buyer by providing unbiased information about the home’s value and condition. Let’s connect so you have an expert guiding you throughout the entire process.
Peek into My Crystal Ball
As we move forward, it’s been challenging as we navigated through all the changes. Putting your dream of a new home on HOLD shouldn’t be one of them. Now more than ever, knowledge will be your negotiation power. There are 3 parts to making the most money on the sale of your property. 1. Know the Market You’re In 2. High Tech Digital Marketing 3. My Blueprint to Your 🔑 to 🏡 Selling Success. No 2 homes are alike, and agents need to 🛑 marketing 1 size fits all. It’s essential to separate your property from the competition. Equally important, you want to keep the buyer focused on your property and not get lost in the shuffle. Having a digital omnipresence on serval platforms is you 🔑 to your success.
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