Home Appraisal versus Home Inspection in Nutley NJ

The mortgage settlement process, often referred to as the mortgage closing, can sometimes seem confusing and a little overwhelming. Whether you are buying a new home in Nutley or refinancing an existing home in Nutley, there are various fees to be paid and steps to go through. Two steps that are often confused by homebuyers are the home appraisal versus home inspection.
Remember the Difference: Home Appraisal versus Home Inspection in Nutley NJ

One easy way to remember the difference between an appraisal versus a home inspection is that a home inspection is for your protection. A home inspector will not estimate the value of your home in Nutley.

Typically, home appraisals are for lenders; home inspections are for buyers.
What is a Home Appraisal?

A home appraisal is a document that provides an estimate of a property’s price, otherwise known as its market value. Your home will serve as collateral for the mortgage, so a lender will require an independent appraisal on the property prior to the approval of your mortgage loan application. This is to ensure that the mortgage loan amount is not more than the value of the home and lot you want to purchase or refinance. Most lenders will loan you no more than 95 percent of the appraised value of the home or purchase price, whichever is less.

The person who conducts the home appraisal is called an appraiser. This person will consider several factors in developing the home appraisal, including location, square footage, recent sales of similar properties, and construction quality to estimate the property’s market value.

There is a fee associated with getting a home appraisal. Some lenders and brokers will include the appraisal fee in the loan application fee; you can ask the lender for a copy of the appraisal. If you are refinancing and have a recent appraisal of the property, some lenders may waive the requirement for a new appraisal. If you are in this situation, you could save a few hundred dollars by using the existing appraisal.
FHA Loans Appraisal

Many mortgages are insured by the federal government through the Federal Housing Administration (FHA.) The FHA requires lenders to get an FHA loans appraisal on properties prior to loan approval. According to the FHA, they require appraisals for three reasons:

To estimate the market value of the property.
To make sure that the property meets FHA minimum property requirements/standards for health and safety.
To make sure that the property is marketable.

An FHA loan appraisal document will indicate property defects that are easily noticeable and found not in compliance with U.S. Department of Housing and Urban Development’s minimum property standards. These defects may not be the same as those items noted in the home inspection report. The estimated cost of a property appraisal is $263 to $444, with a nationwide median cost of $292.
What is a Home Inspection?

There are two types of home inspections, those required by the lender and home inspections initiated by the buyer.
A Lender’s Home Inspection

A lender, especially one that offers Veteran’s Affairs (VA) or FHA-insured mortgages, may require a home inspection and an analysis by an engineer or consultant to check for things like water damage, termite damage, and the structural condition of the home. In rural areas, lenders may want a test of the septic system (if applicable) and a water test to make sure the well and water system will maintain an adequate supply of water for the house. These water tests usually will check for water quantity, not quality. The health department of the local city government may require a water quality test as well, but this might be done outside of the mortgage settlement process and require a separate payment. Keep in mind that a lender’s inspection is for the benefit of the lender, not you. You may want to ask for a buyer’s home inspection to make sure the property is in good condition. The cost of a lender’s home inspection will likely be between $300 and $500.
A Buyer’s Home Inspection

Often, a buyer will make the purchase offer of a home contingent on the results of a home inspection. You will have to pay for this inspection. The cost varies by region, but spending hundreds of dollars could save you thousands.

When you make a purchase offer, sometimes called a binder, contingent on the results of a home inspection, it allows you to cancel closing on the deal if an inspector finds problems with the home or property. If deficiencies are found with the home, you may want to renegotiate for a reduced price or require the seller to make repairs to the home. If you are getting a VA or FHA loan, you will need a certificate from a qualified inspector stating that the home is free from pests such as termites and rodents. In this case, you can also make your purchase offer contingent on pest inspection results.

Similar to the lender’s home inspection, an inspector should examine the home for structural soundness, water damage, and pests. In addition to these basic home inspection criteria, you may want to have the home inspection include an examination of the condition of the roof and the plumbing and electrical systems. It is also wise to have the home tested for environmental hazards that may not be visible to the casual observer. This may include testing for radon gas emissions, water quality, asbestos, lead-based paint and other toxic materials. If you are making your purchase offer contingent on the results for environmental hazards, make sure this is stated clearly in the conditions of your offer.

Remember, the easiest way to know the difference between an appraisal versus a home inspection is that an inspection is for your protection!



For more information about buying or selling a home in Nutley NJ

Related Blogs

    Quick Links, Homes For sale in Nutley, Belleville, Clifton & Montclair NJ

    Quick Links, Homes For sale in Nutley, Belleville, Clifton & Montclair NJ

    Homes For Sale in Nutley NJ

    Townhomes For Sale in Nutley NJ

    Condos For Sale in Nutley NJ

    Short Sales in Nutley NJ

    Bank Owned Homes in Nutley NJ



    Homes For Sale in Belleville NJ

    Townhomes For Sale in Belleville NJ

    Condos For Sale in Belleville NJ

    Short Sales in Belleville NJ

    Bank Owned Homes in Belleville NJ


    Homes For Sale in Clifton NJ

    Townhomes For Sale in CliftonNJ

    Condos For Sale in Clifton NJ

    Short Sales in Belleville NJ

    Bank Owned Homes in Clifton NJ


    Homes For Sale in Montclair NJ

    Townhomes For Sale in Montclair NJ

    Condos For Sale in Montclair NJ

    Short Sales in Montclair NJ

    Bank Owned Homes in Montclair NJ


    Homes For Sale in Wayne NJ

    Townhomes For Sale in Wayne NJ

    Condos For Sale in Wayne NJ

    Short Sales in Wayne NJ

    Bank Owned Homes in Wayne NJ


    Homes For Sale in West Milford NJ

    Townhomes For Sale in West Milford NJ

    Condos For Sale in West Milford NJ

    Short Sales in West Milford NJ

    Bank Owned Homes in West Milford NJ

    Matthew De Fede SFR

    COLDWELL BANKER Residential Brokerage

    The Best Web Site For Nutley Real Estate, Clifton Real Estate, Belleville & Bloomfield NJ

    Related Blogs

      Nutley Real Estate For Sale

      Nutley Real Estate For Sale in Nutley New Jersey

      Nutley Homes For Sale for Under 200,000

      Nutley Homes For Sale for Under 300,000

      Nutley Homes For Sale for Under 400,000

      Nutley Homes For Sale for Under 500,000


      Related Blogs

        Real Estate Transactions & Stress

        Handling The Stress of Selling and Buying a Home

        Part of my specialty as a real estate agent is managing stress for my clients.  It means a lot to me when clients tell me at closing, “Wow, Matt, I can’t believe how smoothly everything went.”  It’s a badge of honor for me when I hear things were “stress free” or “low pressure” from my clients’ perspective.

        Even in the best case scenario, every real estate transaction comes with a little stress.  If you consider WHY most people are buying or selling a home, the motivation usually comes from either positive or negative life change.  Marriage, the birth of a child, the death of a spouse, divorce, a new job, downsizing… all are common reasons people buy or sell a home.

        It’s no surprise that these major life changes are also listed on the “Holmes and Rahe stress scale,” a list of 43 life events which can contribute to illness (http://en.wikipedia.org/wiki/Holmes_and_Rahe_stress_scale).  The ability to manage the stress associated with these events isn’t just about feeling good… it’s also a crucial component of maintaining our health along the way.

        Since I’m always on the lookout for ways to reduce my clients‘ stress levels during this time of transition, I was thrilled to find this excellent article from Reader’s Digest called “37 Stress Management Tips” to share with you:


        Enjoy! If you’re looking for an agent to help you with a stress-free real estate transaction, drop me a line today:  973-846-0065 or got to http://www.HomesInNutleyNJ.com


        Related Blogs

          Advice for First Time Home Buyers in Nutley NJ

          Buying a home can become a very overwhelming task from picking the right town to picking the right real estate agent, hopefully this article we give you some insight as what to expect when your searching for your first home in Nutley NJ.

          Lets look at Nutley and why it’s a great place to buy a home and raise a family, first off the homes are very affordable these days because of the market itself it truly is a buyers market in Nutley, also Nutley is located about 10 miles from NYC and very commutable from town, you have your choice bus, train, car whichever you choose Nutley is a great town for working professionals who commute to NYC.

          Nutley boasts one of the best Town home complexes on the North East, Cambridge Heights, where you can find a town home from $295k-$500k a gated community with a pool, tennis courts and transportation to New York City, Nutley also is very family friendly from the top notch school system to the wonderful parks the town has to offer.

          The first thing you will need to do is find out what type of home you can afford, my web site has all the tools you need to figure that out also you can view every home available for sale in Nutley.

          The next thing to do is to find yourself a Nutley real estate agent you can work with, meet with them ask them all the questions that you may have about the home buying process, while your doing that you should be reviewing your credit and also ask your agent about mortgage companies and if your agent has any recommendations or any mortgage representatives you can consult with before you start viewing homes.

          That is the first step to home ownership in Nutley NJ, if you would like more information you can go to http://www.HomesInNutleyNJ.com and contact me for more information about the home buying process.

          Your Can Search For Homes In Nutley NJ Below

          Related Blogs

            Sarch The MLS for homes in Nutley NJ

            Related Blogs

              Cambridge Heights in Nutley, Townhomes for Sale & Rent

              As a local Nutley Professional Realtor I have my finger on the pulse of the current market place and even in today’s home selling environment our agency has had much success in marketing properties in Nutley, Belleville, Clifton and Bloomfield, I realize that communication and exposure, exposure, exposure will get your home sold in the quickest way possible. If you list with me I also give you a weekly progress call so you are always kept in the loop on the sale of your home. I do have a very aggressive marketing plan with a very strong on-line presence combine that with the National Brand of COLDWELL BANKER and you have a winning combination, so if you ready to sell call me at 862-228-0554 and we can set up a NO OBLIGATION marketing appointment.

              Coldwell Banker Residential Brokerage is your source for Nutley, Belleville & Clifton real estate. If you own real estate that you’re thinking of selling, I would be happy to provide you with a FREE Home Evaluation.

              I Specialize in Town homes & Condos for First Tome Buyers, Some of the complexes I work in are:

              Cambridge Heights in Nutley
              Cambridge Crossings in Clifton
              Essex Park in Belleville
              Riverwalk in Clifton
              And may other local town home communities

              In today’s competitive real estate market, timing is everything. Many good homes are sold before they are ever advertised. Beat other homebuyers to the hottest new homes for sale in Nutley, Belleville & Clifton with my New Listings Notification.

              Whether you are buying or selling a home in Cambridge Heights, Essex Park, Riverwalk or Cambridge Crossings, hire someone like me, who wants to earn your business. I invite you to contact me as I’d be happy to assist you with this important transaction.

              In addition, if you have any general questions about buying or selling real estate in Nutley New Jersey, please contact me as I’m more than willing to help.

              Please browse my website for listings, reports and important local real estate information.

              Go Here To See all available Cambridge Heights townhomes in Nutley NJ

              Related Blogs

                Buying or Selling a home in Nutley, NJ

                Selling or Buying A Home in Nutley NJ, Experience The Coldwell Banker Residential Brokerage Difference. We Are The Nutley NJ Real Estate Experts. I Specialize in Townhomes in Cambridge Heights & Cambridge Crossings.

                Thinking About Selling Your Home in Nutley New Jersey

                I believe that selling a home in Nutley in today’s economic environment has to be a “PROACTIVE” approach, no longer can an agent take a listing agreement throw the home up on the Nutley MLS and hope that its sells, we are just not in that type of market  My approach to home selling in Nutley is very different than many of the other agents in Nutley NJ.
                I use all the latest selling tools and technology to market your home in Nutley ie: Web, Social Media, Text Alerts, Personalized direct mail and more. I also use the conventional means as well, I like to create a buzz around your home or real estate you are selling and I treat it just like we would a marketing campaign in Nutley, combined with the Coldwell Banker Residential Brokerage Brand We Market Your Nutley property Several Different Ways, Web, Social Media, Print, TV, Radio, Ask about our “LEAD ROUTER DIRECT RESPONSE” Marketing Program & our Coldwell Banker Home Warranty if your agent does not offer this they are not a COLDWELL BANKER Residential Brokerage.

                Here are some of the marketing components I use to get your home sold:

                -Multiple MLS Listings (Garden State & New Jersey MLS)

                -Direct Mail Announcing The Sale of Your Home

                -Lead Router Online Marketing System (*Coldwell Banker Residential Brokerage Only)

                -Coldwell Banker Web Sites (www.coldwellbanker.com & www.cbmoves.com)

                -Trulia, Yahoo, Google, Bing, Zillow, NYtimes, NJ.com and 300 other web sites

                -Local “Nutley” Web Sites (localized web campaign) (*Matthew DeFede Only)

                -Social Media Sites (Facebook, Twitter & MySpace) (*Matthew DeFede Only)

                -Open Houses advertised in News Print & Web (*Coldwell Banker Residential Brokerage Only)

                -Coldwell Banker Home Warranty Program (*Coldwell Banker Residential Brokerage Only)

                and so much more, selling homes and real estate in Nutley is my passion!

                “Ask About Our Cambridge Heights Townhome Marketing Program”

                Related Blogs

                  Selling Your Home in Nutley NJ, What To Ask Agents Before Your Hire Them.

                  Are you thinking about selling your home in Nutley NJ and you are interviewing Realtors. Here is what to ask.

                  #1 Are You A Franchise Company or Part of a Larger Firm, Just because the office looks impressive does not mean the agents are.

                  #2 What is your Marketing Plan for my home? do you have it in print, don’t just give me lip service about who you know in town, sometimes an agents reputation is more important than all the marketing they may do. Ask around about your agent before you sign that listing agreement.

                  #3 Will you do an open house at least 2-3 times per month? Where do you advertise my Open House? Will you put it online and inthe Newspaper?

                  #4 Once I sign the Listing agreement are you just going to hand me off to one of your assistants? Some agents use assistants like gophers and just wind up handing your most valuable asset off to an under qualified assistant or other agent and you never hear from that agent again until it’s time to re-list. Insist on a call every week for a status update, usually Monday mornings are the best time to schedule these calls.

                  #5 Find out how much traffic your home get’s on the weekends (if the property is vacant) also have a lock box installed, does not matter if its a rental or sale, every listing should be treated equal.

                  #6 Ask about the commission your paying, are they giving and equal share to participating brokers? this can out you at a disadvantage if they are not.

                  #7 Do you offer a home warranty like Coldwell Banker Residential Brokerage does?

                  #8 What if I want to break my listing agreement with my firm, can I do that?

                  I hope these 8 questions help you flush out which Real Estate firm you decide to list your home with in Nutley, please contact me if you have any questions.

                  Related Blogs

                    Are You A New Real Estate Agent in Nutley in the Process of Choosing A Broker?

                    Are you a new Real Estate agent in Nutley NJ?Well here is my opinion on picking an agency to hang your license at, here are a couple of questions that I would ask your potential Broker and don’t think its all about the split, there is allot more to the business than just the split like the following couple of questions you should be asking:

                    1) As the Broker/Manager do you compete for listings with your agents?
                    2) What is your training process, do you have one? if so do you have it in writing?
                    3) Do you rotate floor time rather than have the same agent on the same days all the time?
                    4) What is your marketing strategy and how will you highlight me and help me build my business?
                    5) Are you a franchise and if so what type of marketing support do you get?
                    6) Can I brand myself on all my marketing material, mailers & signs?
                    7) What is the office policy on leads, do you have that in writing?
                    8) Do you suppliment my marketing efforts, do you share costs for mailings, ads etc.

                    Also I would ask around town and see what your potential brokers reputation is, will it hurt you if they have a bad reputation, will it hurt your business? these are very important questions to get you started off on the right path of real estate success.

                    Related Blogs

                      Show Buttons
                      Share On Facebook
                      Share On Twitter
                      Share On Google Plus
                      Share On Linkedin
                      Share On Pinterest
                      Share On Youtube
                      Share On Reddit
                      Share On Stumbleupon
                      Contact us
                      Hide Buttons