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Conventional Loan Inspection Concerns for Minnesota Realtors
Realtor Resource

Conventional Loan Inspection Concerns for Minnesota Realtors

Conventional loans do not mandate a home inspection and the appraisal is value-focused, so the home inspection carries the full weight of due-diligence. Advise conventional buyers that the inspection — not the appraisal — is what protects them from condition surprises.

Conventional loans do not mandate a home inspection and the appraisal is value-focused, so the home inspection carries the full weight of due-diligence. Advise conventional buyers that the inspection — not the appraisal — is what protects them from condition surprises.

Appraisal vs inspection

The conventional appraisal estimates value for the lender; it does not assess condition. The inspection is the buyer's only thorough condition review.

Where buyers get exposed

Skipping or rushing the inspection on a conventional purchase leaves the buyer exposed to concealed defects like EIFS moisture and sewer-root intrusion.

Guidance for agents

Encourage a full inspection plus locally relevant add-ons — sewer scope, radon, EIFS probing — calibrated to the home's age and location.

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