❓ Lafayette Real Estate Questions Answered

After 17+ years in Lafayette and West Lafayette real estate, Aimee Ness has answered thousands of questions from buyers and sellers. This guide covers the most common ones — from the difference between appraisals and inspections, to how earnest money works, to what actually happens at closing in Indiana.

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What Is the Difference Between an Appraisal and a Home Inspection?

These two are often confused, but they serve completely different purposes. An appraisal is ordered by your lender to confirm the home’s market value,  protecting the bank. A home inspection is ordered by the buyer to evaluate the condition of the property,  protecting you. Both are critical in any Lafayette Indiana, real estate transaction, and you should never skip either.

• Appraisal: Done by a licensed appraiser, determines the fair market value for your lender
• Inspection: Done by a licensed inspector, reveals the condition, safety, and longevity of the home
• Appraisal protects the lender. Inspection protects the buyer.
• Both are typically required, and both happen during the ‘under contract’ phase

What Actually Happens During Closing in Indiana?

Closing is the final step where ownership officially transfers from seller to buyer. In Indiana, it typically takes place at a title company. Both parties (or their representatives) review and sign documents, funds are exchanged, and the deed is recorded with the county. The whole process takes about an hour, and when it’s done, you’re officially a homeowner.

Here’s what you’ll encounter at the closing table in Indiana:

• Identity verification: bring a valid government-issued photo ID
• Loan documents: if financing, you’ll sign mortgage note, deed of trust, disclosure forms
• Settlement statement: — a line-by-line breakdown of every dollar in and out
• Title transfer documents — officially moves ownership to the buyer
• Funds — via cashier’s check or wire transfer if you owe money at closing

Why Is My Zillow Estimate Different From My Actual Home Value?

Zillow’s Zestimate is an algorithm — it doesn’t walk through your home, see the new kitchen you remodeled, account for your oversized lot, or factor in Lafayette’s specific neighborhood nuances. For a truly accurate picture of home prices in Lafayette IN, you need a Comparative Market Analysis (CMA) from a local agent who knows what comparable homes actually sold for recently.

• Zillow doesn’t account for recent updates or renovations
• It can’t factor in Lafayette market shifts or West Lafayette neighborhood premiums
• Zestimates carry a median error rate of 2–8% nationally — that’s tens of thousands of dollars
• A local CMA from Aimee Ness is free and far more accurate for selling home Lafayette decisions

What Is a Seller’s Market vs. Buyer’s Market in Lafayette?

Lafayette shifts between market conditions based on inventory, interest rates, and buyer demand. In a seller’s market — where demand exceeds supply — homes sell quickly, often above asking price, with less negotiating leverage for buyers. In a buyer’s market, more inventory gives buyers more choices and stronger negotiating power. In 2025–2026, Lafayette remains a seller’s market.

Current Lafayette market snapshot: homes are selling in 5–37 days on average, inventory remains limited, and prices are up 4–9% year-over-year depending on the neighborhood. Buyers need to be prepared to move fast.

What Is Earnest Money and How Does It Work in Indiana?

Earnest money is your financial handshake — a deposit that tells the seller you’re serious about buying their home. In Lafayette Indiana, buyers typically put down 1–3% of the purchase price, deposited into a title company escrow account within 24–72 hours of an accepted offer. It’s applied toward your down payment or closing costs at closing.

• Typically 1–3% of purchase price in Lafayette (on a $250K home = $2,500–$7,500)
• Held in escrow by the title company — not accessible to the seller
• Applied toward your down payment or closing costs at closing
• Returned to you if the deal falls through due to valid contingencies (inspection, financing)
• May be forfeited if you back out without a contractual reason

Do I Really Need to Do a Final Walkthrough Before Closing?

Yes — absolutely. The final walkthrough is your last chance to verify the home is in the condition you agreed to. It’s typically done 24–48 hours before closing and takes 30–60 minutes. In Indiana, skipping it is a mistake that can cost you thousands if a seller removed a fixture, a repair wasn’t completed, or something changed since your inspection.

• Confirm all agreed repairs were completed
• Verify all included appliances and fixtures are still in place
• Check that the home is empty (if agreed upon) and undamaged
• Confirm utilities are still on for testing

What Happens to My Mortgage Balance When I Sell My Home in Lafayette?

When you sell your home in Lafayette, the title company contacts your lender to get an exact payoff amount. That amount is paid directly from your sale proceeds at closing — you don’t have to arrange it separately. You’ll receive a detailed settlement statement before closing so you know exactly what to expect. After closing, your lender sends a payoff confirmation letter.

📞 Reach out today for answers tailored to your situation—or grab my [Free Buyer’s Guide] or [Seller’s Guide] to dive deeper.

For current market information for your Lafayette and West Lafayette communities or a free consultation, contact The Aimee Ness Realty Group Lafayette Indiana.