What’s The Difference Between A Home Inspection And A Home Appraisal? Are you getting ready to sell your home? If so, perhaps you’ve considered scheduling an inspection or getting a home appraisal on your home and, during this process, wondering what the difference between an inspection and an appraisal was. The simplest distinction is that inspections deal with investigating the home for any problems, while an appraisal deals with determining the home’s value.
An Inspection and A Home Appraisal Are Different
However, a home appraisal and an inspection are two completely different processes with distinct differences. The differences lie in the assessment process, when touring the property, inspectors and appraisers look for different property related criteria, but there are a few similarities between the two. An appraisal and and an inspection are also completed by 2 completely different people. The home inspection is typically completed for the buyers benefit to see if there are any issues in the home prior to purchasing a home and an appraisal is typically by the bank to see if the homes value relates to the requested borrowing loan amount.
During a home appraisal an appraiser will tour the property and search for factors that influence the potential price of the home. Appraisers will look at the condition of the property as well as the number of rooms the home has, a home with more bedrooms and bathrooms typically has more value. However, they don’t just investigate the property, factors such as local parks, shops, and the quality of nearby schools are also taken into account when estimating the home’s price. These are done for the purpose of determining whether or not the price a buyer paid is reasonable and fair and the bank is able to provide funding for the requested borrowed amount.
Home Inspection Process
A home inspection consists of a home inspector examining various parts of the home such as the electrical appliances, the foundation, the exterior, and the different rooms within the home. An inspection focuses on determining whether or not the home has major items that are unsafe or need to be replaced. Depending on the outcome of the home inspection, the buyer can ask that the home’s selling price be lowered to make room for future repair costs. Most buyers schedule a home inspection before buying, it can save time and stress to seek out a home’s problem before being stuck with it. Ultimately, inspections are done for the purpose of examining the condition of a home.
Home appraisals and inspections are each done for different purposes and are both intended to figure out different things. However, there are still a few similarities between the two processes. Both a home appraisal and an inspection are done for the benefit of the buyer and the buyer, often, pays for both. Additionally, both processes require a professional to tour and assess the physical condition of a home. Lastly, appraisals and inspections both result in reports given to the buyer that can potentially be used to negotiate the price of the home.
Home appraisals and inspections entail different criteria and are both done for different purposes. Most people order an inspection and an appraisal when they’re getting ready ro buy or sell a home. Simply put an appraisal focuses on the value of a property, while examining factors outside of the property as well, and a home inspection focuses on the condition of a property and focuses exclusively on the home. If you’re getting ready to buy or sell a home, then scheduling an appraisal and an inspection is a good thing to do. Both of these processes help a lot during the process.