The Difference Between an Appraisal and a Home Inspection
What’s the difference between an appraisal and a home inspection? Let’s find out.
People often ask me about the difference between home inspections and appraisals. Do you need both when purchasing a property?
First, let’s discuss what each of these two terms refers to. A home inspection is a process meant to assess the condition of a home, while the appraisal is a process meant to assess its value.
A home inspection is designed to check your home for any structural, mechanical, or safety issues, but they won’t consider these problems from the perspective of their impact on your finances.
Appraisers will review the condition of the property, but not in the in-depth way an inspector will.
Now that you understand the difference between these two processes, you’re probably still wondering if they’re both necessary.
Well, while home inspections are usually optional, we always recommend them. Appraisals, on the other hand, are a requirement whenever you are doing a financed purchase. An appraiser is selected through a randomized process by the bank to ensure impartiality, but the inspector will be hired by the buyer.
Once an appraiser has finished looking at your home, they may make a few requests. These requests must be satisfied in order for the loan to go through. However, these requests are rare. Your agent can help you negotiate them if this situation arises.
When a home inspection is over, on the other hand, the results are just suggestions. Nothing the inspector recommends is a requirement. A buyer may ask for a credit, ask the seller to have items fixed, or simply accept the property as-is.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.