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Inspection or Appraisal


SoFaithful
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Which come first, the inspection or the appraisal?

The first lender that pre-approved me said that the "appraisal and inspection are ordered within the same 10 day window". The current lender that pre-approved says "inspection ALWAYS come BEFORE the appraisal".

What do you think? Caveats?

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The inspection, at least in our area, is generally done in the first 7 to 10 days (depending upon the time frame indicated in your contract). If the house has inspection issues, you have the right to cancel the purchase (or renegtiate the contract if desired). If you have ordered the appraisal and decide to cancel the transaction, many lenders will NOT refund the appraisal fee - especially now with the new appraisal rules in effect.

If you are confident that the house will pass the inspection or you can negotiate out the issues with the seller, then yes order the appraisal right away since it is taking much longer now to actually get the appraisals completed. The risk you face is paying both an inspection fee and a fee for the appraisal up front. If you end up canceling the purchase, then the appraisal fee is 'wasted'.

Be aware, I am familiar with the contracts in our area (Florida FAR/BAR and Florida FAR) - not the contracts in your area. Much of the time frames are indicated in your contract, so look there first to see your deadlines.

Edited by Denita
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  • 4 weeks later...
The inspection, at least in our area, is generally done in the first 7 to 10 days (depending upon the time frame indicated in your contract). If the house has inspection issues, you have the right to cancel the purchase (or renegtiate the contract if desired). If you have ordered the appraisal and decide to cancel the transaction, many lenders will NOT refund the appraisal fee - especially now with the new appraisal rules in effect.

If you are confident that the house will pass the inspection or you can negotiate out the issues with the seller, then yes order the appraisal right away since it is taking much longer now to actually get the appraisals completed. The risk you face is paying both an inspection fee and a fee for the appraisal up front. If you end up canceling the purchase, then the appraisal fee is 'wasted'.

Be aware, I am familiar with the contracts in our area (Florida FAR/BAR and Florida FAR) - not the contracts in your area. Much of the time frames are indicated in your contract, so look there first to see your deadlines.

That is perfect information. Well said!

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