Inspections and appraisals are the two moments most likely to make—or break—your sale in Georgia. Inspections test a home’s condition. Appraisals test the value. Understanding how each works (and how the contingencies tie into them) will help you protect your time, your net, and your sanity.
Contingencies 101 (Georgia-style)
Most traditional purchase agreements in Georgia include:
- Due Diligence / Inspection Contingency
The buyer gets a set window (often 7–10 days, but it’s negotiable) to inspect the home. During this period, they can:- ask for repairs or a credit, 2) move forward as-is, or 3) terminate per the contract language. Missing the deadline usually means the contingency expires.
- Appraisal Contingency
If the buyer’s lender orders an appraisal that comes in below the contract price, the buyer can ask to lower the price, request a credit, bring extra cash (an appraisal gap), or in many cases terminate. Cash buyers often waive this entirely.
Why it matters: These two clauses are designed to protect buyers. As a seller, your best move is to prepare smartly so you don’t get blindsided by repair lists or a low valuation.
What Inspections Actually Cover
A typical home inspection looks at structure and safety plus major systems:
- Roof, foundation, grading/drainage
- Electrical, plumbing, HVAC, water heater
- Appliances, doors/windows, insulation/ventilation
- Signs of moisture intrusion, mold, or wood-destroying organisms (a separate termite/WDI report is common in Georgia)
Inspectors flag material defects and safety issues more than cosmetic wear. Expect a written report with photos.
How to De-risk the Inspection
- Prelist mini-check: Before you hit the market, handle simple items (leaky traps, GFCIs, loose handrails, missing smoke/CO alarms, burned-out bulbs, slow drains).
- Service the big stuff: If your HVAC hasn’t been serviced in years, do it now and keep the receipt.
- Disclose known issues: “As-is” does not remove your duty to disclose known, material defects. If your home is pre-1978, provide the federal lead-based paint disclosure and EPA pamphlet.
- Repairs vs. credits: Offering a credit instead of managing contractors under deadline can keep the deal moving. For larger items, collect two bids so negotiations stay grounded.
Tip: Reply to repair requests with a short, written framework: items you’ll do, items you’ll credit, items declined (priced accordingly). Clarity ends back-and-forth.
Appraisals: How Value Is Determined
An appraiser estimates market value using recently sold comparable homes adjusted for differences (size, condition, bed/bath count, lot, garage, pool/outbuildings, school zone, and micro-location). They also weigh current actives/pendings to see where your home sits in today’s market.
If the Appraisal Comes in Low
You (and the buyer) have options:
- Price reduction to appraised value
- Split the gap with a partial reduction + buyer cash
- Buyer covers the gap (some offers include appraisal-gap clauses)
- Appraisal reconsideration (provide better comps and factual corrections)
- Terminate per the contingency and go to a backup offer
How to reduce appraisal risk: Price to recent adjusted comps, document improvements (permits + receipts), and make sure the appraiser has access to upgrades that are easy to miss (encapsulated crawlspace, new insulation, transfer switch, etc.).
Who Pays for What—and How It Hits Your Net
- Inspection fixes/credits: Negotiated. Health/safety and system issues are the most common asks.
- Appraisal outcomes: If value is short, your net may change unless the buyer covers the gap.
- Time is money: Each extra month costs mortgage interest, taxes, insurance, utilities, lawn care, and HOA. Compare a slightly lower but certain contract vs. a higher, more fragile one.
Create a quick Net Sheet that models: price, likely credits, closing costs (including any commissions/fees), and your monthly carry. Decide ahead of time which combination of price + terms + certainty actually wins for you.
When a Direct Sale Makes More Sense
If you want to skip showings, repair lists, and appraisal risk altogether, a direct, as-is sale to Middle Georgia Cash Homes can be the simpler path:
- No repairs or make-ready
- No lender or appraisal contingency (cash purchase)
- Flexible closing date (subject to title/attorney scheduling)
- Clear numbers up front so you can compare your net vs. a retail listing
You still complete standard disclosures, but the process is streamlined—and your timeline is predictable.
Quick Seller Checklist
- Knock out easy safety items (GFCIs, handrails, alarms, leaks)
- Service HVAC / gather receipts for roof, systems, termite treatments
- Prep a concise disclosure list; include the lead-based paint form if pre-1978
- Price with recent, truly comparable sales (not last year’s headlines)
- Decide your repair/credit stance in advance
- Keep a backup plan (a second offer or a direct sale to Middle Georgia Cash Homes) in case appraisal/repairs wobble your first contract
Want a side-by-side comparison (retail vs. direct)? Call/Text 478-216-1795 or send a message to Middle Georgia Cash Homes. We’ll walk you through comps, likely repair asks, appraisal dynamics, and your true net in Georgia—so you can choose the path that fits.