When you decide to buy your first home, you may come across a number of terms and conditions you’re not familiar with. While you may have a general idea of what an inspection is, maybe you’re not sure why you need one, or how it’s different from an appraisal.
To keep it simple, here’s an explainer of each one and what they mean for you as a homebuyer on Staten Island, or elsewhere:
Home Inspection
Once you’re under contract for a Staten Island home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear idea of the safety and overall condition of the home – which is important for such a big transaction. As a recent Realtor.com article explains:
“A home inspection is something that protects your financial interest in what will likely be the largest purchase you make in your life — one in which you need as much information as possible.”
If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Importantly, you don’t have to go through that process alone. On Staten Island your real estate agent, a Realtor subscriber of the Staten Island Multiple Listing Service Inc. (SIMLS), will be your advocate and negotiate with the seller for you.
Home Appraisal
While the inspection tells you about the current state of the house, an appraisal gives you its value. Bankrate explains:
“When buying or selling a home, an appraisal verifies that the sale price of the home is in line with fair market value. This ensures the homebuyer doesn’t pay more than the home is worth, and the mortgage lender doesn’t lend more than it is worth.”
Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.
And, if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted Staten Island real estate professional will help you navigate any additional negotiations to try to close the gap.
Bottom Line
The inspection and the appraisal are different but equally important steps when buying a home – and you don’t need to manage them by yourself. It’s wise to have a Staten Island Realtor at your side to provide expert guidance from start to finish.
For a directory of Staten Island Realtors, visit MLSsiny.com, the online home of the Staten Island MLS.
The information contained, and the opinions expressed in articles, videos, or infographics posted or shared by the Staten Island Board of Realtors® (SIBOR) and/or the Staten Island Multiple Listing Service Inc. (SIMLS) are not intended to be construed as investment advice. SIBOR and SIMLS do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. SIBOR and SIMLS will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
