There are a variety of circumstances that can prevent or delay a closing, but there are two in particular that pertain to the condition of the home itself. A home appraisal looks at the monetary value of the property, while a home inspection looks at the structural condition of the building.


An appraisal is a property valuation conducted by an authorized party using various methods such as comparable homes and current market values. If you are the buyer, you are expected to pay the cost of the appraisal to see what the property is worth.

Appraisals are required by lenders in order to make sure the property is worth at least as much as the buyer will be paying for it. That way, if for any reason a foreclosure were to occur, they can still recoup their losses. If the appraisal comes in too low, the lender will not fund more than the appraised value, which brings the closing process to a screeching halt unless the seller lowers their price, or the buyer ponies up the cash to pay the difference.


Most real estate contracts have something called a home inspection contingency, which is built in to allow the buyer to back out of the deal without penalty if an inspection reveals serious issues with the home, whether it’s plumbing well past its prime, or a termite infestation bad enough to make even the lender cower.

Needless to say, if the inspection reveals problems that the buyer is unwilling to deal with, the closing most likely will not take place. Even if the buyer does decide to stick around, further negotiations to have the seller either drop the price or repair the damages will likely cause further delays, and the closing still may not happen if neither party can come to an agreement.

At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.

Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: Florida Doc Stamps: What Are They And Who Pays Them

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