What is the Difference Between an Appraisal and an Inspection in Connecticut?

 Posted on March 07, 2024 in Assault and Battery

When you are buying a home, several items will have to be addressed before the house is officially yours. From the time your offer is accepted to when you are handed the keys, the entire process can take anywhere between four to six weeks. This depends on the lender, your ability to provide financial paperwork, and even what state you reside in.

Our Stamford residential real estate attorney has represented hundreds of buyers in residential real estate transactions and is ready to help you with your home purchase.

What is an Appraisal, and Why is it Important?

When you apply for a loan with a bank, the lender will typically conduct an appraisal. An appraisal determines the value of the property. The lender will typically cover the cost of the appraisal.

The lender will comb through your property with a fine-tooth comb, evaluating the property’s worth. The lender will generally compare your property against comparable homes that sold in the last year in your area, along with the sales price of each. An appraisal allows the bank to determine the fair market value of your property against the requested loan amount. In the event that you default, your property will be used as collateral against the loan.

The lender must send you the appraisal report at least three days prior to closing. Once you receive the report, you should review it to see if there are any errors. If any relevant information is missing, the valuation may be inaccurate.

What is a Home Inspection, and Why is It Important?

A home inspection usually takes place within the first several days after the seller accepts the buyer’s offer. During a home inspection, the inspector, buyer(s), and the buyer(s)’ realtor will walk through the property, evaluating its condition. A home inspector is concerned about the safety of the property, so he or she will mention any visible issues that could cause problems in the future.

Connecticut Public Act No. 99-254 requires home inspectors to be licensed under the Home Inspection Licensing Board. Connecticut law defines a home inspection as being an examination and written report of the heating, electrical, and plumbing systems, masonry, foundation, and structural components of a residential property.

Following the home inspection, the inspector will provide you with an inspection report. The report will include checklists, photographs of identified issues, and detailed notes. The inspector will not advise you on whether or not you should buy the home. However, you can withdraw your offer at this time. Keep in mind that if you choose to do so, you will lose your initial deposit in most situations. If you are concerned about the legal implications of the transaction, a Fairfield County residential real estate attorney will advise you accordingly.

Buying a House? Contact our Stamford, CT, Residential Real Estate Attorney Today

Purchasing a home can be an exciting but intimidating process. If you have questions regarding the closing process, you should speak with our Fairfield County, CT, residential real estate attorney. Contact Law Offices of Daniel P. Weiner online or call 203-348-5846 to schedule your free consultation.