A home inspection and home appraisal are both extremely helpful parts of the home-buying process, and it’s always a good idea to get both. Yes, there’s a cost involved, but it’s well worth it to make sure you’re making a good investment.

Benefits of a home inspection

It’s in the buyer’s interest to order a home inspection before closing on any property sale, even if it looks to you like the home is in tip-top shape.

You never know what damages might be lurking that even the sellers might not be aware of. There could be cracks or water damage in the foundation, leaks in the roof, a broken air conditioner, or faulty connections in the electrical system that you’ll want to know about before you finalize your home purchase.

Home inspection reports help you understand the home’s condition, make you aware of any risks or repairs needed, and can give you leverage when negotiating with the seller. For instance, if you know the roof needs to be replaced, you can ask the seller either to come down on price or replace the roof on their own dime.

Benefits of an appraisal for homebuyers

An appraisal will confirm the value of the property, so you can be confident you’re paying what it’s worth.

Almost all mortgages require a home appraisal — so if you’re like most buyers who’ll be using a loan to purchase a house, you’ll need an appraisal report before you finalize your mortgage agreement.

A property appraisal can also determine the price of your loan. A mortgage lender will consider the loan-to-value (LTV) ratio of the property, and one with a higher LTV ratio will be considered a high-risk loan. A property that’s run-down will often come with a higher interest rate than one that’s in better shape (and worth more).

An experienced local real estate agent, like Carlos G, can be your best option to achieve a desirable outcome. San Diego agents are familiar with local market conditions and can provide guidance on pricing your home and making repairs without spending more than you need to.