MIKE BODEEN
ABR, CRS, E-PRO, RECS
Realtor Professional
(480) 473-9999
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What is a Home Appraisal?
A home appraisal is typically arranged by the lender and is usually paid for by the Buyer. All loans require an independent appraisal. The lender requires an appraisal because you may think a home is worth more money than it should bring in the current marketplace.
You make an offer on a home based on your belief in value but if the appraisal doesn't substantiate that then the lender may believe the home is overvalued, then they may feel this is a higher risk and may not grant you a loan.
Basically the lenders want to protect themselves by ensuring the property is worth its market value. The appraisal helps you, the Buyer, by assuring that you do not end up having negative equity on the home when you purchase it.
What is a Home Inspection?
When you have an accepted offer in Arizona, you have a 10 day inspection period (time is negotiable) to hire home inspectors, termite inspectors, etc. to help you determine the condition of the property. If, after examining the property, you decide not to proceed with the purchase due to your discoveries, you must notify the Seller within the Inspection Period and provide a reason.
Usually, Buyers will give the Sellers an opportunity to correct any problems with the home prior to the Close of Escrow when the property deed is recorded.
Your Realtor can help you understand the Purchase Agreement and the Due Diligence Period of the Agreement in particular so that your rights as a Buyer are protected.