Home Inspection and Appraisal: What to Ask and How to Prepare

Two separate professionals will evaluate the home you’re buying: an inspector (condition) and an appraiser (value). Many buyers confuse them. Here’s the difference and what to expect.

Home Inspection: What You Need to Know

What it is: A licensed home inspector (not your agent, not the seller) inspects the home’s major systems, usually over a few hours. You should attend. You get a written report listing findings from minor to major.

What gets inspected:

• Foundation and structure
• Roof and gutters
• HVAC (heating and cooling)
• Plumbing and fixtures
• Electrical panel and outlets
• Insulation and ventilation
• Windows and doors
• Built-in appliances
• Safety items (stairs, railings, smoke detectors)

What usually doesn’t get inspected in a standard inspection:

• Radon, lead, mold, and wood-destroying insects (separate tests you can order)
• Wells and septic systems (separate inspections)
• Code compliance or permit status
• Cosmetic issues (paint, carpet, design)

Cost: It varies with the home’s size, age, and any add-on tests. Get a quote from the inspector when you schedule.

Top 10 Questions to Ask Your Home Inspector

1. “Can I walk through the home with you?” (You learn in real time.)
2. “What’s the condition and approximate age of the roof, HVAC, and water heater?” (The big-ticket items.)
3. “Are there any structural concerns?” (Foundation cracks, settling.)
4. “What’s the age and condition of the electrical panel?” (Some older panels are known hazards.)
5. “Any plumbing issues or water damage?” (Leaks get expensive.)
6. “Is there evidence of past water intrusion or mold?” (Not just cosmetic.)
7. “Is the insulation adequate?” (Affects energy costs.)
8. “Any deferred maintenance that needs attention soon?” (What can’t wait?)
9. “Will your report list items by severity?” (You need to know major vs. minor.)
10. “When will I get the full report?” (Your contingency deadline depends on it.)

What If the Inspection Finds Problems?

If the inspection reveals issues:

1. Minor issues (cosmetic, inexpensive fixes): Often best to let them go, or include them in a credit request.
2. Major issues (roof, HVAC, foundation): Ask for repairs, a price reduction, or a credit at closing.
3. Serious issues (structural damage, significant water or insect damage): Consider walking away within your contingency period.

Important: If you waive your inspection contingency, you give up the right to renegotiate or terminate based on inspection findings. I don’t recommend waiving it unless the home has already been thoroughly inspected and you understand the risk.

Appraisal: How It Works

What it is: A valuation by a licensed or certified appraiser, ordered by your lender. The appraiser compares the home to recent sales of similar homes (comps) to estimate its market value. The lender uses this to decide how much it will lend.

Cost: Usually paid by the buyer, often as part of closing costs. Your lender’s Loan Estimate shows the fee.

Timeline: Often one to two weeks from order to report, depending on appraiser workload.

The Appraisal Process

1. The appraiser schedules a time to see the home
2. They measure and photograph the home
3. They research comparable sales
4. They compare the home to those comps
5. They send the report to the lender
6. The lender gives you a copy

You typically don’t attend the appraisal.

What Makes an Appraisal Come in Low?

A home can appraise low if:

• The purchase price is above what recent comparable sales support
• The home needs significant repairs or is in below-average condition
• Recent comparable sales were lower
• Market conditions shifted between the contract and the appraisal

What happens if the appraisal is low?

• The lender bases the loan on the lower value, so you’d need more cash to keep the same price
• You can renegotiate the price with the seller
• You can bring more cash to cover the difference
• You can request a reconsideration of value if you think it’s wrong
• If you have an appraisal contingency, you may be able to terminate

Can You Challenge an Appraisal?

Yes. If you think the appraisal is wrong:

1. Gather better comps (recent sales of very similar homes)
2. Document upgrades or facts the appraiser missed
3. Ask your lender to submit a reconsideration of value
4. The appraiser reviews the information
5. In some cases, the lender may order a second appraisal

Reality: A challenge works best when there’s a clear factual error or a better comp the appraiser didn’t use.

The Timeline: Inspection Before Appraisal

Your contract sets the actual deadlines, but a typical sequence looks like this:

1. First week after ratification: Home inspection
2. By the end of the inspection period: Repair negotiations wrap up
3. Next one to two weeks: Lender orders the appraisal
4. A week or two later: Appraisal report comes back
5. Final weeks: Final underwriting and closing

Key Takeaways

• You inspect the condition; the lender appraises the value
• Ask inspectors about the roof, HVAC, foundation, plumbing, and electrical
• Appraisal low? Renegotiate, bring cash, or request a reconsideration of value
• Keep your inspection contingency unless you fully understand the risk
• Budget for add-on tests like radon, wood-destroying insects, and well and septic where they apply

Questions About Your Specific Home?

If you have an inspection or appraisal coming up, I’m happy to talk through what to expect. Call me at (540) 246-9067.