Are you wondering why your contract mentions both a home inspection and an appraisal? You are not alone. In Cherry Creek and across Denver County, these two steps serve different purposes and can change how your deal comes together. This guide breaks down what each one does, who orders and pays, typical timelines, and how results shape negotiations so you can move forward with confidence. Let’s dive in.
What a home inspection covers
A home inspection is a visual check of a property’s condition. The inspector looks at structure, major systems, and visible safety concerns so you understand what you are buying and what may need attention. The report is a narrative checklist with photos and recommendations. It is not a guarantee or a value opinion.
You typically order the inspection right after the contract is signed. In Denver, inspection periods are often negotiated and commonly run about 7 to 10 days. You pay the inspector directly, and a standard inspection for a single-family home often runs about $300 to $600 depending on size and complexity. Inspectors may hold credentials from groups like InterNACHI or ASHI; if a specialized issue comes up, you may need a contractor or engineer to take a closer look.
Inspection results often lead to requests for repairs, credits, or, if allowed by your contract, termination. The Colorado Association of REALTORS forms include deadlines and objection language. If you miss the inspection deadline, you may waive your right to object, so timing matters.
What an appraisal is and why it matters
An appraisal is an independent opinion of market value used by your lender for underwriting and risk. The lender orders it after you apply for the loan and submit the signed contract. You usually pay the fee as part of closing costs, sometimes up front. The appraiser is state licensed or certified and follows professional standards.
In the Denver area, appraisal fees commonly range from about $450 to $800 or more depending on the property. Appraisals often take 1 to 2 weeks from order to report, depending on appraiser availability and property complexity. The report includes comparable sales, adjustments, and an opinion of value that guides your loan amount.
Key differences at a glance
- Purpose: Inspection checks condition. Appraisal determines value for the lender.
- Who orders: Inspection is buyer-driven. Appraisal is lender-ordered.
- Who pays: Inspection is paid directly by you to the inspector. Appraisal is a loan cost you usually pay through your lender.
- Outcome: Inspection may lead to repair or credit requests. Appraisal affects loan approval and price renegotiations if value is low.
- Control: Inspection terms live in your contract’s inspection contingency. Appraisal outcomes fall under financing and appraisal provisions.
Typical Cherry Creek timeline
Here is the general flow after your offer is accepted. Exact dates are set in your contract and by your lender and vendors.
- Deliver earnest money as agreed.
- Inspection period begins. You schedule the inspection promptly and add specialty inspections if needed, such as radon, sewer scope, roof, HVAC, chimney, or mold.
- You review the report and submit any inspection objections or requests within the inspection deadline.
- You complete the loan application; your lender orders the appraisal after receiving the executed contract.
- The appraisal is scheduled and completed. Scheduling and the report often take 7 to 14 days.
- The lender reviews the appraisal and issues loan conditions.
- If there is an appraisal or inspection issue, negotiations occur and repairs or credits are documented.
Plan for the inspection and appraisal to run in parallel. Scheduling early helps you protect your contingency rights and avoid delays.
How inspection results affect negotiations
After you receive the inspection report, you usually have four choices: proceed as-is, request seller repairs, request a credit or price reduction, or terminate if allowed by your contract. Many Denver sellers respond to material safety items. Cosmetic items are often left to the buyer.
If you request repairs, be specific and include licensed contractor quotes when possible. If you request a credit, make sure the amount aligns with likely repair costs. If the seller declines, your contract’s inspection contingency language will guide whether you can proceed or terminate without penalty.
How appraisal outcomes change the deal
If the appraised value meets or exceeds the contract price, your loan proceeds as planned. If it comes in below the price, the lender bases the loan on the appraised value. You and the seller then decide how to bridge the gap.
Common options include bringing extra cash, a price reduction from the seller, splitting the difference, or asking the lender to request a reconsideration with additional comparable sales or factual corrections. If your contract has an appraisal or financing contingency that allows termination, you may be able to cancel and keep your earnest money if timelines and language are met. In competitive markets, buyers sometimes use an appraisal-gap addendum that commits extra cash to cover a shortfall. Waiving an appraisal contingency increases risk and should align with your funds and goals.
Condo and HOA details to watch
Cherry Creek includes many condos and upper-tier buildings. Appraisers and lenders often review HOA financials, insurance, and any litigation. Make sure HOA documents are complete and available early. Unique buildings or limited recent sales can make value support more complex, so allow time for the appraiser to find solid comparable sales.
Strategy tips for buyers
Use this quick checklist to stay ahead of deadlines and surprises.
- Get pre-approved before you write. This helps your lender order the appraisal faster.
- Order the home inspection immediately after ratification. Schedule a top-choice inspector early.
- Add specialty inspections that fit the property. Radon, sewer scope, roof, HVAC, and chimney are common in the Denver area.
- Send the signed contract to your lender right away so the appraisal can be ordered.
- Review the inspection report quickly and submit objections before the deadline.
- Decide in advance how you will handle a low appraisal. Know whether you can add cash, want to renegotiate, or need contingency protection.
Strategy tips for sellers
These steps help you keep leverage and reduce delays.
- Consider a pre-listing inspection or a pre-appraisal for unique or high-end homes. You can price and prepare with fewer surprises.
- Address obvious deferred maintenance and keep receipts and permits for recent work.
- Respond quickly to inspection requests and get contractor estimates early.
- If the appraisal is low, provide recent comparable sales and documentation of improvements to support value discussions.
- For condos, ensure HOA documents, budgets, and insurance details are organized and accessible.
Risks to avoid and how to mitigate them
Missing deadlines is the most common issue. In Colorado, the inspection and appraisal rights are tied to specific dates in your contract. Late notices can waive your ability to object or to terminate without penalty. Keep all notices in writing and delivered on time.
Appraisal shortfalls can force a difficult choice: more cash, a lower price, or termination if your contract allows it. Plan for this up front. In fast-moving markets, talk with your agent about appraisal-gap strategies that fit your budget and risk tolerance.
Inspection surprises can delay closing if major repairs surface late. Schedule early, allow time for specialty inspections, and document repairs with receipts and permits. For condos and HOAs, missing documents can slow underwriting, so gather them early.
Unique and luxury property notes
Cherry Creek has older custom homes, high-end single-family properties, and luxury condos. Unique finishes and limited comparable sales can complicate both inspections and appraisals. Consider extra time for scheduling, specialty evaluations where needed, and additional comparable research for value support. A thoughtful pre-listing plan can help your sale move smoothly.
Final take
A home inspection protects you on condition. An appraisal protects the lender on value. Both are essential in Denver contracts and both are driven by firm deadlines. If you plan early, schedule quickly, and communicate clearly, you can reduce risk, negotiate from a position of strength, and keep your closing on track.
If you want a calm, well-managed process in Cherry Creek or central Denver, request a Free Home Valuation & Consultation and coordinate next steps with a local advisor who runs point from offer to close. Connect with Nicole Wadsworth to get started.
FAQs
What is the difference between a home inspection and an appraisal in Denver?
- An inspection evaluates property condition for you, while an appraisal provides a market value opinion for your lender that guides the loan amount.
Who pays for the inspection and appraisal in Colorado?
- You typically pay both: the inspection fee directly to the inspector and the appraisal fee through your lender as part of closing costs.
How long do the inspection and appraisal take in Denver?
- Inspections usually wrap within 3 to 10 days from scheduling; appraisals often take 7 to 14 days from order to report, depending on availability and complexity.
What happens if the appraisal comes in low in Denver?
- You can bring extra cash, ask the seller to reduce price, split the difference, seek reconsideration with new comps, or terminate if your contract allows.
Can inspection issues affect the appraisal or loan approval?
- Yes. Major defects that impact safety or habitability can influence appraised value or trigger lender-required repairs before closing.
Do condo sales in Cherry Creek have extra appraisal steps?
- Appraisers and lenders often review HOA financials, insurance, and litigation, which can affect underwriting and timing for condo transactions.
