Buying or selling a home in Eau Claire or Chippewa Falls? Then you’ll want to be prepared for two important steps in the process: the appraisal and the home inspection. While they may seem similar, they serve very different purposes. If you’re not sure what to expect—or what happens if something goes wrong—this guide will break it all down so you can feel confident when navigating your transaction.
What Is an Appraisal?
An appraisal is an unbiased estimate of a home’s value, conducted by a licensed appraiser. Lenders require appraisals to ensure they’re not lending more than the home is worth.
How Does the Appraisal Process Work?
The lender orders the appraisal after you go under contract.
The appraiser visits the home to assess size, condition, upgrades, and comparable home sales.
They compile a report that determines the home’s market value.
What Happens If the Appraisal Comes in Low?
For Buyers: A low appraisal means your lender may not finance the full amount. You’ll need to renegotiate the price, pay the difference in cash, or dispute the appraisal.
For Sellers: A low appraisal can delay closing. You may need to lower your price or challenge the appraisal with additional comparable sales.
Local Insight: Home values in Eau Claire and Chippewa Falls have been rising, but pricing a home right is still crucial. Overpricing can lead to low appraisals and lost deals.
What Is a Home Inspection?
A home inspection is a detailed evaluation of a property’s condition. Unlike an appraisal, which focuses on value, an inspection focuses on safety, structure, and repairs that may be needed.
What Does a Home Inspection Cover?
Roof, foundation, and structural integrity
Electrical, plumbing, and HVAC systems
Appliances, windows, and insulation
Potential safety hazards like mold, radon, or water damage
What Happens If Issues Are Found?
For Buyers: You can negotiate repairs, request seller credits, or walk away if the issues are significant.
For Sellers: Tackling major repairs before listing can prevent unwanted surprises that may delay your closing. Want to go the extra mile? Consider doing a pre-inspection so you know exactly what might come up—and can address it early.
Local Tip: Most buyers in Eau Claire and Chippewa Falls include home inspection contingencies in their offers, allowing them to back out if the inspection reveals serious problems.
Do You Need Both an Appraisal and an Inspection?
Yes!
✔ Appraisals protect the lender by confirming the home’s value.
✔ Inspections protect the buyer by uncovering hidden issues.
✔ Sellers benefit from both by ensuring their home is fairly priced and in good condition before listing.
Understanding appraisals and inspections is key to a smooth real estate transaction. Whether you’re buying or selling, being prepared for these steps can help prevent surprises and keep the process moving forward.
Next Steps
Feeling overwhelmed by the appraisal or inspection process? Whether you’re buying your first home or getting ready to sell, let’s cut through the confusion together. Book a consult with me for personalized guidance, real answers, and a solid plan—no pressure, just real talk.