What Role Do Inspections and Appraisals Play in Selling a Home?

 Posted on December 02, 2020 in Real Estate

There are many reasons why you may wish to move to a new home. You may be pursuing job opportunities in a new area, you may need more space for your growing family, or you may simply be looking to make a fresh start in a new community. While moving can be exciting, the process of selling your home can sometimes be lengthy and complicated, and you will want to understand the factors that can affect your ability to complete this transaction. Home inspections and appraisals can often have a significant impact on the purchase price of your home and the closing costs you will be required to pay, so you will want to be sure to understand the best way to approach these events.

Appraisals Vs. Inspections

An appraisal will determine the market value of your home, while an inspection will address its condition and identify any issues that may need to be repaired or addressed. An appraisal will typically be scheduled by the buyer’s mortgage lender, and if the appraised value of the home is lower than the offer made by the buyer, the buyer may attempt to renegotiate the price, or they may back out of the sale if contingencies in the purchase contract allow them to do so. Steps sellers can take to ensure that their home is appraised properly include making improvements and fixes to minor issues and ensuring that the property is clean and well-maintained.

A home inspection will be performed by the buyer, and an inspector will look for any problems that need to be repaired or other issues that the buyer may want to have addressed before they move in. In many cases, buyers will request that sellers perform repairs, and if there are major problems, contingencies in the purchase contract may allow the buyer to back out of the sale. Some issues that sellers may need to address include:

• Structural problems - A home’s foundation may have cracks, or some settling may have occurred. Damage to the roof may include loose or missing shingles, soft spots, leaks, or other issues that require roof repair or replacement.

• Electrical and plumbing issues - A home’s wiring may not be up to code, or electrical panels may not be connected properly. Leaks in water pipes or sewer systems may have led to water damage in the home or elsewhere on the property.

• Appliances and HVAC systems - A furnace, air conditioning system, water heater, or other home appliances may be in need of maintenance or replacement, or issues such as improperly sealed air ducts may have led to damage to the home.

• Pests - Termites may have weakened the structure of the home, or other pests may have entered the home and caused damage, such as mice, squirrels, or raccoons.

• Toxic substances - Older homes may have been built using asbestos or lead paint. Mold can be an issue in areas of a home that contain moisture, and steps may also need to be taken to address the presence of radon.

• Other types of damage or repairs - A variety of seemingly minor issues may be uncovered during an inspection, such as doors or windows that do not close properly, decks or fences that need to be repaired, or old or damaged chimneys that present safety hazards.

Contact Our North Chicago Real Estate Attorneys

At Newland & Newland, LLP, we can provide the legal help you need when selling your home. We will work with you to address any concerns that may affect the transaction, and we will ensure that your rights and interests are protected at all times. Contact our Grayslake real estate lawyers at 847-549-0000 to set up a free consultation today.

Sources:

https://www.investopedia.com/terms/h/home-inspection.asp

https://www.zillow.com/sellers-guide/bad-home-inspection-for-sellers/

https://www.opendoor.com/w/repairs