Buying in Potomac and hearing people use “inspection” and “appraisal” like they mean the same thing? They do not. Each plays a different role in your purchase or sale, and mixing them up can cost you time, money, or even the deal. In this guide, you’ll learn what each one covers, who orders and pays, when they happen, how results affect financing and repairs, and what to watch for in Montgomery County. Let’s dive in.
Home inspection: what it covers
A home inspection is your condition check. A licensed or certified inspector evaluates the visible and accessible parts of the home, including structure, roof, electrical, plumbing, HVAC, appliances, interior and exterior, and site drainage. The goal is to spot defects, safety concerns, and items that may need repair or replacement.
Your inspection report usually includes photos, clear descriptions, and a list of prioritized issues. Inspectors may suggest specialists for further evaluation, such as a structural engineer or electrician. You can also add targeted tests like radon, pest/termite, well and septic inspections, chimney scans, mold moisture checks, or a sewer scope.
Keep in mind an inspection is not a code compliance review. It reflects what was visible and accessible on the day of inspection, and some issues can remain hidden.
Appraisal: how lenders assess value
An appraisal is your lender’s valuation check. A state-licensed or certified appraiser analyzes comparable sales, market data, and property features to form an opinion of market value. The appraiser’s client is the lender, and their job is to support the loan decision.
The appraisal report focuses on value and marketability. It may include limited comments on condition, especially where issues affect value or safety. For certain loan programs, like FHA or VA, the appraiser must also apply program-specific minimum property standards and will flag repairs that must be addressed for the loan to close.
Who orders and who pays in Maryland
- Inspection: You, the buyer, usually order and pay for the inspection after your offer is accepted. Sellers sometimes arrange a pre-listing inspection to surface issues early.
- Appraisal: Your lender orders the appraisal once you are under contract and have applied for the loan. You typically pay the appraisal fee as part of your loan costs.
Typical costs for both services are in the range of a few hundred dollars, depending on the property and complexity. Add-on tests for inspections are priced separately. Ask local providers for quotes.
When each happens in Potomac deals
- Inspection timing: Schedule your inspection right after contract ratification and within your inspection contingency period. In many Montgomery County contracts, this window is roughly 5 to 14 days, though your contract sets the exact timeline. Book early so you have time for follow-up specialists if needed.
- Appraisal timing: Your lender usually orders the appraisal after you apply for the mortgage and the contract is accepted. Turn times vary with market volume and appraiser availability. Many appraisals are completed within 1 to 3 weeks of order.
What the results mean for you
Inspection = condition. Appraisal = value. Each result drives different next steps.
Using inspection results
Inspection findings are negotiation tools, not automatic repair lists. After you receive the report, you can:
- Ask for specific repairs or remediation.
- Request a credit at closing or a price reduction.
- Accept the property as-is.
- Cancel the contract if your contingency allows and you find material defects.
Sellers can accept, reject, or counter. In a competitive Potomac market, the scope of repairs or credits is often shaped by demand, timing, and how the home was priced and presented.
If the appraisal comes in low
A value below the contract price can create a financing gap. Common paths include:
- You bring in additional cash to cover the shortfall.
- The seller reduces the price to the appraised value.
- You and the seller split the difference or renegotiate terms.
- The lender considers a reconsideration of value or, in limited cases, a second appraisal.
- You cancel under an appraisal contingency if no agreement is reached.
If the appraised value meets or exceeds the purchase price, financing can move forward, subject to normal underwriting conditions.
Lender-required vs buyer-requested repairs
- Buyer-requested repairs come from the inspection and are negotiated between you and the seller.
- Lender-required repairs come from the appraisal or underwriting and focus on safety, structural concerns, habitability, and program standards. These usually must be completed or escrowed for the loan to close.
FHA and VA loans apply minimum property standards, so appraisers will flag serious issues like roof leaks, electrical hazards, or known structural problems. Conventional loans follow investor guidelines, and underwriters may still require fixes that affect safety or marketability.
Local Potomac considerations
Potomac and the broader Silver Spring–Frederick–Rockville corridor have unique features that shape inspections and appraisals. Knowing them helps you plan and avoid surprises.
Wells, septic, and private systems
Some Montgomery County homes, especially those on larger lots, use private wells or septic systems. These systems require specialized inspections and can affect lender requirements. If a property has a private system, schedule those inspections early and plan for any needed repairs or certifications.
Flood zones and drainage
Properties near the Potomac River or in floodplains may require flood insurance if financed by a federally regulated lender. Inspectors look for signs of past water intrusion and site drainage issues, and appraisers note any flood-related effects on marketability. Ask early about flood zone status and expected insurance costs.
Radon and older-home risks
Certain parts of Maryland have measurable radon potential. Radon testing is a common add-on during inspections. For homes built before 1978, federal rules require lead-based paint disclosures, and you can consider a lead inspection or abatement consultation if you plan renovations.
HOAs and marketability
Many Potomac properties are part of homeowners’ associations with covenants, fees, and maintenance rules. HOAs can affect comps, property condition expectations, and buyer costs. Make sure you review HOA documents and budget for fees as part of your decision.
Smart buyer and seller checklist
Use this quick list to stay on track in Montgomery County resale transactions.
- Clarify purpose early: inspection for property condition, appraisal for market value.
- Set your timeline: schedule the inspection as soon as your contract is ratified to meet deadlines.
- Plan add-ons: consider radon, pest/termite, well and septic (if applicable), sewer scope, chimney, and mold moisture checks.
- Prepare to negotiate: get contractor estimates for major items if you intend to seek repairs or credits.
- Know your loan program: FHA and VA appraisals enforce minimum property standards; conventional loans also flag safety and habitability issues.
- Anticipate local risks: ask about flood zone status and drainage history, especially near waterways; check HOA rules and costs.
- Keep disclosures in mind: expect standard Maryland property disclosures and, for pre-1978 homes, federal lead-based paint disclosures.
- Understand costs: budget a few hundred dollars for an inspection and a similar range for an appraisal, with extra for add-on tests. Get current quotes.
- Balance risk and leverage: waiving the inspection reduces your ability to negotiate and increases the chance of missed defects.
Work with a local guide
The right advice at the right time can protect your budget and your contract. A local team that knows Potomac and the wider Montgomery County market can help you set smart timelines, line up trusted inspectors, anticipate lender requirements, and negotiate with confidence. If you are selling, pre-list planning and selective repairs can streamline the appraisal and reduce surprises at underwriting.
Ready to move forward with a clear plan for inspections and appraisals? Connect with David Cox and the Cox & Cox Group for calm, experienced guidance backed by Coldwell Banker resources.
FAQs
Who orders and pays for inspections and appraisals in Potomac?
- Buyers usually order and pay for inspections, while lenders order appraisals and buyers typically pay the appraisal fee as part of loan costs.
Can you waive a home inspection in Montgomery County?
- Yes, but waiving the inspection removes your leverage to negotiate or cancel for condition and increases the risk of undiscovered defects and unexpected repair costs.
What happens if the appraisal is lower than the contract price?
- You can bring extra cash, negotiate a price change, request a reconsideration of value, or cancel if your appraisal contingency allows and no agreement is reached.
Are inspection findings the same as lender-required repairs?
- No, inspection items are negotiable between buyer and seller, while lender-required repairs stem from the appraisal and underwriting and usually must be completed or escrowed for loan approval.
What specialized inspections should Potomac buyers consider?
- Common add-ons include radon testing, well and septic inspections, pest/termite checks, sewer scope, chimney inspection, mold moisture evaluation, and specialist reviews for structural or electrical concerns.
How do flood zones near the Potomac River affect financing?
- A flood zone designation can trigger mandatory flood insurance for many loans and may affect marketability, so confirm status early and factor premium costs into your budget.
Are inspectors and appraisers regulated in Maryland?
- Appraisers are state-licensed or certified and follow USPAP, while home inspectors are typically licensed or certified and follow industry standards of practice; always verify credentials and insurance.
