Buying in Alpharetta and hearing both “appraisal” and “inspection”? They sound similar, but they serve different goals and can lead to very different outcomes for your offer and closing. If you understand how each works in Georgia contracts, you can protect your budget, your timeline, and your peace of mind. This guide breaks down purpose, timing, who pays, and what to do when issues pop up so you move forward with confidence. Let’s dive in.
Appraisal vs. inspection: key differences
An appraisal supports your lender. It estimates market value and confirms the home is acceptable collateral for your loan. The appraiser reviews condition at a high level and may note issues that affect value or habitability.
A home inspection supports you. It is a detailed, visual review of the home’s systems and components, documenting safety concerns, visible defects, and maintenance needs. It does not set value or guarantee future performance.
Both matter. An inspection helps you decide whether to move forward and how to negotiate. An appraisal helps determine if your lender will fund the loan amount you requested.
Who orders and who pays
- Appraisal: Your lender or mortgage broker orders it and selects an independent appraiser. You typically pay the fee as part of closing costs or upfront as your lender requires.
- Inspection: You choose and hire your inspector. You pay for the general inspection and any optional tests you add, such as termite, sewer scope, radon, or mold.
When they happen in Alpharetta contracts
- Inspection timing: In Georgia, many offers use the GAR contract with a negotiated Due Diligence Period. In our area, 7 to 15 days is common, but it can vary. You should schedule inspections immediately after contract acceptance to stay within your deadline.
- Appraisal timing: Your lender orders the appraisal after you go under contract and apply for the mortgage. The site visit commonly happens about 7 to 14 days after the order, depending on the market and scheduling. The report typically reaches underwriting before your loan is cleared to close.
Your leverage and likely outcomes
- Inspection outcomes: Within your Due Diligence Period, you can request repairs or credits, renegotiate price, or cancel under the terms you negotiated. After the period ends, your cancellation rights are usually limited.
- Appraisal outcomes: If the appraisal comes in at or above your purchase price, you proceed as planned. If it comes in low, you and the seller must bridge the gap, which can mean a price reduction, you bringing additional funds, a split solution, or canceling if your contract allows. You can also ask your lender about a reconsideration of value when there are strong comparable sales.
What each evaluates
Appraisal scope
- Market value via comparable sales, sometimes supported by cost or income approaches.
- A high-level condition check and confirmation that the home meets lender property standards for safety and habitability.
- Limited in scope, not a code inspection or detailed condition report.
Home inspection scope
- Visual review of roof, exterior, structure, HVAC, plumbing, electrical, interior, attic and crawlspaces, plus attached components.
- A written report with photos and prioritized notes for safety, major defects, and maintenance.
- Optional add-ons: termite or other wood-destroying organism inspection, sewer line scope, radon testing, moisture or mold assessments, chimney and pool checks, and specialized engineering opinions.
Common Alpharetta findings to expect
- Older homes: Deferred maintenance such as roof age, older plumbing lines, and outdated wiring in pre-1970s properties. HVAC systems may be at or near end of life.
- Newer builds: Cosmetic punch-list items, grading and drainage adjustments, and warranty-related fixes.
- Regional issues: Termite activity is possible in parts of Georgia. Homes near creeks or low-lying areas may have standing water concerns, and floodplain considerations can apply. Your lender will have a flood determination, and you can review public flood maps as part of diligence.
Georgia contracts, contingencies, and your deadlines
- Due Diligence Period: The GAR contract typically gives you a negotiated window to inspect and decide. Act within this period to preserve the right to request repairs, credits, or cancel as agreed in your contract.
- Appraisal and financing protections: Many buyers include financing and appraisal protections. If you are offering in a fast-moving Alpharetta neighborhood, discuss appraisal-gap strategies and how your down payment or contingency language might affect your leverage.
- Required repairs: Lenders may require repairs for safety or habitability before funding. Inspection repair requests are a negotiation between you and the seller, often supported by contractor estimates.
- Disclosures: Review the Seller’s Property Disclosure carefully and use inspections to verify and clarify any noted items.
How to respond after your inspection
- Prioritize safety and structure first, such as active leaks, electrical hazards, and foundation concerns.
- Get written estimates for major items so your requests are specific and documented.
- Choose your path: request seller repairs, request a credit or price reduction, accept the home as-is, or cancel within your Due Diligence Period if that is best for you.
- If repairs are agreed, clarify who completes them, the scope, permit needs, and whether you will have a reinspection before closing.
What to do if the appraisal is low
- Ask the seller for a price reduction to match the appraised value.
- Bring additional cash to cover some or all of the gap.
- Meet in the middle with a partial reduction and partial cash.
- Consider a reconsideration of value with your lender when strong comparable sales support your contract price.
- Use an appraisal or financing contingency to cancel if your contract allows and a path forward does not make sense.
Reinspections before closing
- Inspectors can return to verify repairs. This is usually a separate fee, paid by you or by the seller if negotiated.
- Appraisers can perform a limited reinspection to confirm lender-required repairs. Be prepared to provide invoices, permits, or photos if your lender asks.
Specialized tests worth considering in Alpharetta
- Termite or WDO inspection: Common in Georgia and important for wood framing. Some loan programs may require it.
- Sewer scope: Helpful for older neighborhoods where root intrusion or aging materials can cause issues.
- Radon testing: Recommended regardless of region, especially if you plan long-term occupancy.
- Flood review: Your lender’s flood determination is standard. If the property is in a Special Flood Hazard Area, flood insurance will be required.
Buyer checklist for Alpharetta offers
- Confirm your GAR contract deadlines for Due Diligence, financing, and appraisal.
- Schedule your general inspection immediately after going under contract.
- Budget for common add-ons in our area, such as termite, radon, and sewer scopes.
- Collect contractor estimates before you negotiate repairs or credits.
- Coordinate with your lender so the appraisal order goes in quickly.
- If appraisal risk is a concern, discuss appraisal-gap strategies and contingency language with your agent and lender.
- Compare the Seller’s Property Disclosure to your inspection findings and clarify any discrepancies.
How The Chatham Co. helps you navigate
You deserve a calm, informed path from offer to closing. With decades of local experience in Alpharetta and North Fulton, our team helps you set smart timelines, choose the right inspections, and prepare negotiation strategies that fit your goals. We also bring builder and developer insight that can be invaluable when you need realistic repair expectations, cost ranges, or a practical plan for post-close improvements.
If you are preparing an offer, we can help you time the inspection, anticipate appraisal scenarios, and structure protective contract language. When issues arise, you will have steady guidance and clear options so you can move forward with confidence.
Ready to talk through your next steps in Alpharetta? Connect with The Chatham Co. for a personal consultation.
FAQs
What is the difference between a home appraisal and a home inspection in Georgia?
- An appraisal estimates market value for your lender and checks basic lender standards, while an inspection evaluates the home’s condition for you and outlines safety, defect, and maintenance findings.
When do appraisals and inspections happen in an Alpharetta purchase?
- Inspections usually occur during the Due Diligence Period you negotiate in the GAR contract, while appraisals are ordered by your lender shortly after contract acceptance and loan application.
Who pays for the Georgia home inspection and appraisal?
- You hire and pay the inspector and any optional tests, and you typically pay the appraisal fee that your lender collects as part of closing costs or upfront.
What if my inspection reveals major defects during Due Diligence?
- You can request repairs or credits, renegotiate price, proceed as-is, or cancel within your contractual period as allowed by your GAR agreement.
What are my options if the appraisal comes in below the contract price?
- You can ask for a price reduction, bring additional cash, split the difference, request a reconsideration of value with better comps, or cancel if your contract permits.
