What’s the Difference Between an Appraisal and Home Inspection?
When selling a home in Las Vegas, there are many steps you and the buyer will go through. You’ll have more work on the front-end of the transaction, as you’ll be responsible for preparing the home for sale. Once someone makes an offer, you’ll have to wait for them to secure financing.
Before a bank will lend someone money to purchase a home, they make sure to do their due diligence. This includes an inspection and appraisal.
- Inspection. A home inspection is an examination of the condition and safety of a real estate property. Lenders typically include requirements about a condition of a home in their underwriting agreement. For example, few lenders will finance unsafe homes.
- Appraisal. A home appraisal is an unbiased opinion of a home’s value. Banks require appraisals to make sure they’re not over-investing in homes.
Let’s learn more about these two formalities and if there are any ways to avoid them in your home sale.
Home Inspections Explained
Home inspections report on the condition of a property. A qualified home inspector will look at your property’s condition, assessing things like the heating and cooling systems, plumbing, electrical work, water and sewage. The inspector will also look for signs of insect, water or fire damage.
The purpose of a home inspection is to make sure the property is safe. Because many things turn up in home inspection reports, this also gives the buyers a chance to negotiate. For example, they may ask for a credit to replace the HVAC system. Or, they may request that the seller fixes cracks in the foundation.
Inspections are an important tool in real estate, but they are a headache for sellers. They typically slow down the process and require the sellers to spend money fixing certain issues. If you’re worried about your home passing an inspection, consider selling your home as-is. This way, you will not be responsible for making repairs and improvements.
Home Appraisals Explained
Home appraisals are assessments of a property’s value. They are performed on behalf of the mortgage lender to make sure they’re not giving you more money for the home than it’s worth. This way, if the borrower ends up defaulting on the loan, the lender has the reassurance that they can sell the property and get back their money.
In the current housing market in Las Vegas, appraisals are a bit tricky. Buyers are competing for homes and making above-ask offers, which has caused some appraisals to come back lower than expected. In these cases, the buyers have to either come up with the difference or re-negotiate with the seller.
The only way to avoid an appraisal is by selling your property for cash. Appraisals are not required in cash sales, though the buyer may still request one to make sure they aren’t overpaying for the property.
Get a Free Cash Offer on Your Las Vegas House
As you can see, home inspections and appraisals are important parts of real estate transactions. If you don’t want to go through these formalities, or you’re worried that your home won’t pass an inspection, get in touch with We Buy Any Vegas House. We buy homes for cash in any condition – and we don’t require inspections or appraisals!