Appraisal & inspection
Two parallel reports that happen during escrow — one for the lender, one for you.
The appraisal
A licensed appraiser hired by your lender visits the home, measures it, and compares it to recent comparable sales. The output is a written market value the lender uses to confirm the loan.
- • Who orders it: the lender
- • Who pays: the buyer
- • Typical timing: days 7–14 after contract
- • What it covers: market value
The inspection
A licensed inspector hired by you walks the home — roof, foundation, HVAC, plumbing, electrical, appliances — and produces a detailed report on condition and any defects.
- • Who orders it: the buyer
- • Who pays: the buyer
- • Typical timing: days 5–10 after contract
- • What it covers: condition + defects
Common questions
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What's the difference between an appraisal and an inspection?
An appraisal estimates the home's market value — required by the lender to confirm the loan amount makes sense. An inspection assesses the home's physical condition — for the buyer's information, to identify problems before closing.
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Who pays for the appraisal and inspection?
The buyer pays for both, though they're sometimes negotiated as seller credits. Appraisal: typically $500–$800 in OC. Inspection: $400–$800 depending on home size and add-ons (sewer scope, pool, chimney).
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What if the appraisal comes in below the offer price?
Three options: (1) the seller drops the price to match, (2) you bring extra cash to cover the gap, (3) you walk away if you have an appraisal contingency. We'll discuss the right move based on the specific market and your priorities.
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What if the inspection finds problems?
Most homes have something. The decision is which items rise to negotiation. Major systems (roof, HVAC, electrical, plumbing) and safety issues usually warrant repairs or credits. Cosmetic items rarely. We'll prioritize together based on the report.
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Can I waive the inspection contingency?
Yes — and it's sometimes done in competitive offer situations to make a stronger bid. But understand the risk: you take the home as-is, including any defects. I usually recommend at least an information-only inspection so you go in with your eyes open.
Walking inspections together
When you work with me, we walk the inspection together — I'll point out what matters, what doesn't, and what's worth negotiating.