Segment 3
Why are Inspections and Appraisals Needed and Who Does Them
Inspections and Appraisals - Why are they needed and who does them?
1. They are two different things:
Inspection – typically done by the buyer’s inspector to make sure the home is in workable condition.
Kicker: Inspectors do NOT have to be Licensed in Colorado
I’ve had buyers do their own inspection
Home Inspection Issue – Inspector tore apart pedestal sink story
2. Appraisal is done by someone who holds a license with the state to verify the home meets the loan guidelines and it’s an outside 3rd party opinion of the home’s value.
●Used by lenders to substantiate to the investor, person providing the money for the loan and
●That the home meets the loan guidelines and is worth the agreed upon price.
This is another example why Agent Selection matters.
Not every agent understands that the Lender Requirements are for the Buyer and are NOT a seller obligation.
Yet some agents think its ok to charge the seller for stuff like this.
You are listening to the Real Estate Voice with myself Barb Schlinker of Your Home Sold Guaranteed Realty, you can reach me at 719 301 3900
What are some challenges you have with Inspections and Appraisals?
First if all, if the buyer really wants to buy, there is no reason why we cannot work through all of the issues that come up on an inspection and an appraisal.
Inspections – if a buyer walks over minor stuff, they really did not want the house.
Recently got a low ball offer on my listing and agent told me they were under contract on another home but intended to blow up their contract to get this home, if the seller would accept their offer.
Would you as a seller take that deal? It puts your contract in doubt if you know the buyer wants to ‘lock and shop’.
Appraisal valuations are harder to overcome:
●Only a VA appraisal can be challenged and it takes a lot of time to do that. Most do not want to wait but I have done it before.
●These issues can be negotiated between parties.
●I had quite a few occasions where the appraisal came in low but the buyer wanted the house so much they came up with the difference in cash to get the house
●If an appraisal comes in low that is time when we as agents can help by actually negotiating the issue:
●Ex had a lender that devalued the appraisal below what the appraiser put in.
● That was too bad for the buyer who picked that lender because the buyer bought the home anyway and it ended up costing them another $5k extra to get the house.!
You are listening to the Real Estate Voice with Barb Schlinker of Your Home Sold Guaranteed Realty, if you are thinking of making a move call Barb at 719 301 3900 or visit BarbHasTheBuyers.com
When We Come Back We Will be Discussing: The Last Two Reasons Why Agents Blow up Contracts, Tips on Negotiating and Some Hot New Listings Coming UP!
