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How appraisals and home inspections work when buying a home

| Jul 3, 2021 | Real Estate |

Before you move forward with purchasing a home in New York, you may want to take certain steps to make sure it is suitable for living and has no major defects. You also need to determine the home’s true value so that you know whether you are paying a fair price.

According to Time, appraisals and home inspections are two important elements associated with buying real estate. What are they, and how do they help protect your interests when purchasing a Texas home?

Appraisals

Before a mortgage lender extends you a loan, it may ask for an appraisal on the property you plan to buy. An appraisal determines the value of a home with respect for the current real estate market, giving the lender confidence that it is lending an appropriate amount. An appraiser may look at any number of different areas to come up with a value for your home. These areas might include the residence’s size and condition. The appraiser may also review comparable properties in your area before giving you a number.

Home inspections

A home inspection is another critical part of the home-buying process. The home inspection helps ensure that you do not invest your money into a property that has major structural or other defects. Home inspections are always a good idea before you make the final decision to buy a particular property. These inspections may reveal major issues with a home that may not otherwise be visible to the naked eye.

Typically, an appraisal is necessary before purchasing a home, while a home inspection is optional. However, failing to have a home inspection performed may lead to financial and other trouble down the line if the home you buy has serious defects.