Navigating home inspections, objections and appraisals | Preferred Businesses

Home buyers and sellers in Colorado often find themselves navigating a complex trio of processes: home inspections, the objection and resolution phase and appraisals. For decades-long real estate agent Julie Kersting, based in Buena Vista, guiding clients through these steps is her specialty.

With more than 25 years of full-time real estate work, Kersting has built a reputation throughout Chaffee County for local expertise, integrity and professionalism.

What is a Home Inspection?

After a seller accepts an offer, most contracts include an inspection contingency. During the inspection period, typically within a set deadline spelled out in the purchase agreement, the buyer hires a licensed home inspector to evaluate the condition of a property. The inspector examines structural elements (foundation, roof, walls), major systems (electrical, plumbing, HVAC), safety issues, radon levels, septic systems, well and water quality and deferred maintenance. 

Kersting said one of her first tasks is making sure her clients understand that an inspection is not about market value — it’s about the condition of the home and an opportunity for the Buyer to understand what they are purchasing.

“Buyers need to know what problems really cost them, what repairs are necessary for safety, what might be future‐costly issues,” she said.

The Objection and Resolution Process

Once the inspection report is completed, the buyer can submit an inspection objection to any issues that are concerning to the buyer, including serious, unexpected or potential life safety items. In Colorado, as elsewhere, this objection must be submitted by a deadline laid out in the contract.

What happens then varies. Some sellers agree to make repairs; others offer credits (i.e., reducing the purchase price or covering closing costs) so the buyer can complete repair work after purchase and some propose no resolution in that the home is being sold “as-is and where-is.” If no agreement is reached by the resolution deadline, or if the contract explicitly allows termination in that case, the buyer may terminate the contract and receive the earnest money back.

Kersting emphasized clear communication during this step. She often helps her clients gather bids from contractors to estimate repair costs, frame objections in contract language that is precise and negotiate effectively with sellers to reach fair resolutions. In most cases, it is comforting to both the buyer and seller to have the inspection phase quickly in the process since it can be a significant hurdle.

Appraisals: Purpose and Issues

The appraisal is a separate process. It is conducted by a licensed or certified appraiser usually ordered by the buyer’s lender. The purpose: to determine whether the agreed-upon purchase price is consistent with the property’s fair market value, given recent sales of similar properties, the home condition, location, lot size, upgrades and so on. 

If the appraisal comes in at or above the contract price, the transaction proceeds. But when the appraisal is lower, complications arise. The buyer often must “object by deadline” — meaning they notify the seller and lender of the disparity.

Resolution of Low Appraisal

According to industry practice and local contract norms, several paths are possible when appraised value falls short:

1. The seller may lower the asking price to match the appraisal.

2. The buyer may cover the difference in cash (paying more than what the lender will finance).

3. Parties may renegotiate other terms or find additional comparable sales (comps) to persuade the appraiser to revise the valuation.

4. The contract terminates if the buyer and seller do not resolve the shortfall.

Julie Kersting described appraisal resolution as another point where a skilled agent makes a difference: helping clients assemble documentation about recent comparable sales, making sure the appraiser has full information on upgrades or improvements that might affect value and guiding clients through negotiation if needed.

Why These Steps Matter

Without a home inspection, buyers risk inheriting huge repair bills or safety hazards. Without a good resolution to an inspection objection, deferred maintenance can reduce enjoyment of the home or its resale value. Without an appraisal that supports the contract price, lenders may refuse to finance, or buyers may feel they are overpaying.

Kersting said her role is as educator as much as negotiator: “Clients deserve to understand what the inspection reveals, what rights they have under the contract and how the appraisal works for their benefit and their risk.”

Bottom Line

For those buying or selling property in Colorado, especially in more rural or mountain areas like Chaffee County, understanding inspections, objection resolution and appraisals can make the difference between a frustrating transaction and a successful closing.

Kersting continues to assist clients through every phase — making sure that deadlines are met, that resolution proposals are fair and that appraisals reflect real value. For her, it’s all part of ensuring that clients don’t just close on homes — they close with confidence.

Julie Kersting is a member of the Chaffee County Times Preferred Business Program.