Short answer: A home inspection tells you what condition the house is in, and it works for you. An appraisal tells your lender what the house is worth, and it works for them. You need both, and each can change your deal if it finds a problem.
Buyers often mix these two up, and sellers do too. Here is how each works in a typical Clarksville purchase.
The home inspection
You hire a licensed inspector during the inspection period in your contract. They examine the roof, structure, plumbing, electrical, heating and cooling, appliances, and visible signs of moisture or damage. Plan to attend the end of the inspection and ask questions.
In Middle Tennessee, ask your inspector to look closely at crawlspace moisture, drainage around the home, and signs of wood-destroying insects, since those can matter on both older and newer homes.
What you can do with inspection results
- Ask the seller to make repairs before closing.
- Ask for a credit toward closing costs or a price reduction.
- Accept the home as is if the issues are minor.
- Walk away within your inspection period if the issues are too serious, depending on your contract.
The appraisal
Your lender orders an independent appraiser to estimate the home's market value using recent sales. If the appraisal supports the price, the loan moves forward. On VA loans, the appraiser also checks that the property meets VA's minimum property requirements.
If the appraisal comes in low
- Ask your agent to review the comparables and see whether the appraiser missed anything.
- Request a reconsideration of value with additional comparable sales, if supported.
- Renegotiate the price with the seller.
- Cover the gap with additional cash if it makes sense for you.
- Use your appraisal contingency to cancel, if your contract allows it.
Timeline in a typical contract
The inspection usually happens in the first week or so after the contract is signed, and the appraisal follows once the lender orders it. Stay in close contact with your agent and lender so deadlines do not slip.
Frequently asked questions
How much does a home inspection cost in Clarksville?
Fees depend on the size and age of the home and any add-ons. Ask for a quote up front, and ask what is included.
Who pays for the appraisal?
The buyer typically pays the appraisal fee as part of closing costs, although it is ordered by the lender.
Can a house fail an inspection?
An inspection is not pass or fail. It is a report of the home's condition that you use to decide how to proceed.
What does a VA appraisal check?
In addition to value, it checks that the home meets VA minimum property requirements, meaning it is safe, structurally sound, and sanitary.
Should I attend the inspection?
Yes, if you can. Hearing the inspector explain issues in person is far more useful than reading the report alone.
Questions? Let's talk it through.
No pressure and no jargon. Tell me what you are trying to do and I will help you plan the next step.
Contact Southern ReserveJenn McMillion is the owner and principal broker of Southern Reserve Realty in Clarksville, Tennessee, serving buyers, sellers, and Fort Campbell relocation clients. Southern Reserve Realty is a veteran-owned, independent brokerage. This article is general information, not legal, tax, or financial advice.