Your lender will order the appraisal of your home and coordinate with me to schedule a time for the appraiser to see the home. The appraisal determines the fair market value of the home and insures the home is worth the price you are paying in order to secure the loan. The appraisal also helps insure the house meets certain standards regarding its condition. The average costs is $ 325-$400 for an owner-occupied home.

If the home does not appraise for the sales price, negotiations will begin with the Seller to adjust the price.

Once the appraisal is done and the lender is satisfied they are not lending more than the property's market value, the survey will be ordered.

The survey is nothing more than a blue print of the property's boundaries and where any improvements are within those boundaries. The survey also provides valuable information on the location of easements and how they might affect the property. For instance if you plan to construct an in-ground pool the survey would make you aware of any utility easements that may prohibit such activity.

The survey can be a critical part of the home buying process and will be a lender requirement. In most cases it is a buyers expense.