When you buy a home, you will have an inspection and an appraisal. Here’s the difference between the two.
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Inspections and appraisals are two completely different things, but they are both extremely important to a successful transaction. I’ll go through each of them today and point out what makes them different.
“Inspections and appraisals are both essential to a home purchase.”
A home inspection is done for the buyer’s benefit. The licensed inspector will go through the entire home and inspect it, including all the major systems of the home (plumbing, roof, electrical, etc.). They will make note of every issue they see, big or small. After the report is complete, you’ll be able to negotiate repairs with the seller or proceed with the contract.
An appraisal is done on the buyer’s behalf, but it’s not necessarily for the buyer. It’s more for the bank or lender who is funding their loan. An appraiser won’t look through the home as thoroughly as an inspector, but they will make sure that everything is in proper, working order. Then they will look at market trends and statistics in order to make a determination of value. If an appraisal comes in low, you have a few options. We’ll discuss those at a later time.
If you have any questions for me about this topic or anything else relating to real estate, let me know. If I answer your question on a video, I’ll send you a $25 gift card. I look forward to hearing from you soon.