Home Buying in 85283>Question Details

Michele Blou…, Home Buyer in Deale, MD

Why cant appraisels be done after home inspections so the buyer does not lose money if house does not pass inspection?

Asked by Michele Blough, Deale, MD Mon Jul 1, 2013

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There are different conventions in different parts of the country. Here in New York, after an offer is accepted the inspection is done before the contracts are signed. The appraisal comes later.
1 vote Thank Flag Link Mon Jul 1, 2013
You should discuss this with your lender and Realtor. With the right professionals helping you, this can be very easily worked through.
1 vote Thank Flag Link Mon Jul 1, 2013
That's the way it should be done. Tell your lender not to order the appraisal until you give him the okay.
1 vote Thank Flag Link Mon Jul 1, 2013
It can wait. You just have to put it in the contract. Everything is negotiable.
1 vote Thank Flag Link Mon Jul 1, 2013
Hello Michele:

I agree with John and those others which say it should be done that way. I have advised my borrowers to do it that way for 14 years. One borrower on a $1 Million+ home was so sure it would pass inspection he insisted the $600 appraisal be done first. Oops. This gorgeous home had been constructed with faulty wiring and he canceled the deal.

That was back when we lenders were allowed to talk to our appraisers. The appraiser had not yet completed all the required back-office work, so she agreed to only charge him $300.

Yes, this slows down the process a bit, but I almost always am still able to close purchase deals on time.

Good luck.
1 vote Thank Flag Link Mon Jul 1, 2013
just as a point of information....here, in my area...........the inspection IS done first.........the appraisal is then ordered following the inspection and inspection issues being resolved, once the mortgage application is being processed.......
1 vote Thank Flag Link Mon Jul 1, 2013
Michele,
Your real estate agent will advise you best on the sequence of inspections/appraisal.
Appraisal can be ordered after inspection has been completed, you just have see how your offer is structured.
Web Reference: http://www.talktosteffy.com
1 vote Thank Flag Link Mon Jul 1, 2013
Typically, as soon as your lender receives the accepted purchase agreement, they immediately begin preparing to finalize the loan so that the closing can take place as scheduled. The appraisal is their first step in this process. Since appraisals involve an additional third party, they order this as soon as possible.

If you prefer to possibly delay closing, then my advice is to submit the purchase agreement to your lender after you have completed the home inspection. This could easily add an additional week to the closing process but it can prevent an additional cost if the inspection fails.
1 vote Thank Flag Link Mon Jul 1, 2013
Each purchase situation differs... there are times when it's smart to appraise first and then inspect - and times when the inspection is the best first step. In our current market in Phoenix, we see many homes that are overpriced when compared to recent comparable sales (called "comps.") When the buyer is depending on a loan to buy the home, the bank will only loan an amount that corresponds with the appraised value. In these cases, spending dollars on inspections first can be a waste. If the asking price seems especially high, I will suggest that my buyer clients ask the seller to reimburse them for the appraisal if it comes in below asking price AND the seller won't drop the price down to "meet appraised value." Bottom line here is that every situation is different and your agent will help you analyze the pros and cons associated with your choices... with the objective being to hopefully minimize your expenses if the sale doesn't go through.

Gerri Bara
West USA Realty
480-540-9931
gerribara@gmail.com
http://www.gerribara.com
0 votes Thank Flag Link Mon Jul 8, 2013
Michele Blough

Dear Michele:

They can. Just ask your Realtor and your lender to set up this way when the time comes.

Call me with any questions.

Jeffrey Masich, Realtor, GRI, MBA
HomeSmart
Arizona homes and land for purchase or sale
http://ArizonaHomesLand.com
JeffMasich@ArizonaHomesLand.com
480-556-0940
0 votes Thank Flag Link Tue Jul 2, 2013
Hello Michele,

Let your Lender know up front that you do not want to have appraisal done until you have property Inspected! This may extend your Closing which in turn would need an Addendum to your contract.
If the property does not pass the inspection the repairs may be a negotiable item and the Seller may agree to all / part of repairs.
Your Realtor should be able to help you through this!

Have a GREAT day!

Vivien Biggs
602-615-9137
Prudential Arizona Properties
0 votes Thank Flag Link Mon Jul 1, 2013
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