Are you wondering whether you need both an appraisal and a home inspection in Broomfield 80020? You are not alone. First-time buyers often mix them up, which can lead to missed deadlines and surprise costs. In this guide, you will learn the key differences, what you should budget, how each affects your contract and loan, and a simple timeline to follow. Let’s dive in.
Appraisal vs inspection: what they do
What a home inspection covers
A home inspection is a visual, non-invasive review of a home’s condition at the time of inspection. It looks at structure, roof, HVAC, plumbing, electrical, appliances, and visible safety concerns. Inspectors follow industry standards, and reports include defects, recommended repairs, maintenance items, and photos.
What an appraisal measures
An appraisal is an estimate of market value prepared by a licensed appraiser. It helps your lender confirm that the price supports the loan amount. The appraiser analyzes comparable sales, market trends, and property details. While condition can influence value, the appraiser’s goal is value, not a full condition report.
The big difference
- Inspection protects you by revealing condition and safety issues so you can negotiate or walk away under your contingency.
- Appraisal protects the lender by confirming value for the mortgage and checking for major issues that could affect marketability.
- County tax assessments are separate and used for property taxes, not for your mortgage appraisal.
Who orders and who pays
Inspection: buyer-ordered, buyer-paid
You or your agent schedule the inspection during your contingency period. You pay the inspector directly, often at booking or on site. Inspectors are often certified by InterNACHI or ASHI. The inspection is not a code compliance or engineering report unless you hire those services separately.
Appraisal: lender-ordered, buyer-paid
Your lender orders the appraisal after you have a signed contract and a loan application. You usually pay the appraisal fee to the lender as part of your closing costs. Appraisers are state-licensed and follow USPAP and lender or agency requirements, including special rules for FHA and VA loans.
Timelines you can expect in 80020
When each happens
- Inspection: Scheduled right after your offer is accepted. In the Denver metro, inspection contingency windows are commonly 5 to 10 business days, but your contract controls the deadlines.
- Appraisal: Ordered by your lender after contract and loan application. The appraisal process usually runs during your financing contingency timeline.
On-site time and report delivery
- Inspection: On-site is typically 2 to 4 hours for a single-family home. Most inspectors deliver reports within 24 to 72 hours, sometimes the same day.
- Appraisal: On-site is typically 30 to 90 minutes. Reports often arrive 3 to 10 business days after the visit, depending on workload and property complexity.
What can slow things down
High demand for inspectors or appraisers, unique properties, accessory units, acreage, and condo association document needs can add time. Some lenders that use appraisal management companies may also add administrative steps.
Typical costs in Broomfield and the Denver metro
Standard ranges
- Home inspection: about 350 to 650 dollars for a single-family home. Price varies by size, age, and features.
- Appraisal: about 500 to 900 dollars for a standard single-family home. Price varies by complexity, loan program, condo vs single-family, and rush requests.
Common add-ons for inspections
- Radon test: about 150 to 250 dollars.
- Sewer scope/camera: about 150 to 300 dollars or more.
- Pest inspection: about 75 to 200 dollars.
- Roof, chimney, or structural engineer follow-ups vary and are only needed if flagged.
In most cases, you pay for all inspections and add-ons you request. You also pay the appraisal fee to the lender even though the lender orders it.
How results can change your contract
After the inspection
Your inspection contingency lets you take one of several paths:
- Request seller repairs.
- Request a price reduction or a credit at closing.
- Accept the home as is.
- Cancel under the terms of your contingency if you and the seller cannot agree.
After the appraisal
- If the appraisal meets or exceeds the contract price, your loan typically proceeds.
- If the appraisal is low, you and the seller can renegotiate the price, or you can bring extra cash to cover the gap. Lenders fund based on the appraised value, not the contract price, unless your contract says otherwise.
- In competitive markets, some buyers waive the appraisal contingency. This is risky for first-time buyers and should be considered only with clear guidance from your agent and lender.
FHA and VA special rules
FHA and VA loans have Minimum Property Requirements. Appraisers may require repairs for health, safety, or structural concerns before the loan can close. This can add time for repairs and re-inspections, so plan your schedule with a cushion if you are using these programs.
A simple 80020 buyer calendar
- Day 0: Offer accepted and contract signed.
- Days 1 to 3: Schedule your home inspection immediately.
- Days 3 to 7: Inspection takes place; expect the report within 24 to 72 hours.
- Days 3 to 10: Review the report and negotiate repairs or credits within your inspection deadline.
- Days 1 to 14: Lender orders the appraisal; expect 3 to 10 business days after the appraiser’s visit for the report.
- After reports: Resolve repair requests, address any appraisal gap, and remove contingencies per your contract.
- Closing: After lender underwriting clears and any required repairs are complete.
Budget checklist for first-time buyers
- Home inspection: 350 to 650 dollars.
- Appraisal fee: 500 to 900 dollars.
- Specialty tests (radon, sewer, pest): 150 to 400 dollars each.
- Potential appraisal gap funds or repair escrow: varies by case. Build a cushion and plan to negotiate.
Pro tips:
- Attend the inspection to learn about maintenance and upcoming costs.
- Ask your lender about average appraisal turn times and rush options.
- Buying a condo in 80020? Confirm association documents and lender requirements early to avoid delays.
- Discuss radon testing with your inspector. Many Denver metro buyers choose to test.
Local scenarios you might see
- Minor defect findings: Sellers often offer credits or agree to reasonable repairs.
- Significant safety or structural issues: You may request repairs, a price adjustment, or cancel under your contingency. Lenders may not fund serious safety risks.
- Low appraisal in a hot market: You can renegotiate the price, add cash to cover the gap, or cancel if your contract allows.
The bottom line for Broomfield buyers
An inspection tells you what you are buying. An appraisal tells your lender what the home is worth for the loan. Both matter, and both run on tight timelines. Schedule fast, watch your deadlines, and budget for inspection, appraisal, and a few add-ons. If you are using FHA or VA financing, allow extra time for any required repairs.
If you want a calm, step-by-step plan tailored to 80020, reach out to Dianne Goldsmith. With 25 years of Denver-area experience, she will help you time each step, negotiate repairs and credits, and protect your interests from offer to closing.
FAQs
What is the main difference between an appraisal and an inspection?
- An inspection evaluates a home’s condition for you, while an appraisal estimates market value for your lender.
Who orders and pays for the appraisal in Broomfield 80020?
- Your lender orders it after you go under contract, and you typically pay the fee as part of your closing costs.
How long do inspection and appraisal reports take in the Denver metro?
- Inspection reports often arrive within 24 to 72 hours; appraisal reports usually take 3 to 10 business days after the appraiser’s visit.
What do home inspections usually cost around Broomfield?
- Most single-family home inspections run about 350 to 650 dollars, with add-ons like radon or sewer scopes priced separately.
What happens if the appraisal comes in low on my Broomfield home?
- You can renegotiate price, bring extra cash to cover the gap, or cancel if allowed by your appraisal or financing contingency.
How do FHA and VA loans affect appraisal requirements?
- FHA and VA appraisals include minimum property standards, and repairs may be required and re-inspected before closing.
