Thursday, June 11, 2015

What's the Difference Between an Inspection and an Appraisal?

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One question we have been getting a lot lately is, "What is the difference between a home inspection and a home appraisal?" Today we are here to answer the question for you. 

Home inspections and home appraisals are two things that people often confuse. Here's the difference. A home inspection is something a buyer does to inspect the home they are purchasing and make sure it is structurally sound and all the proper systems are working. They also check for safety and foundation issues. This is highly recommended for anybody purchasing a home. 

After the home inspection process is over, you typically negotiate some repairs with the seller. Once an agreement is reached, the lender will go ahead and order an appraisal.

The appraisal is strictly for the lender, to make sure the value of the home is consistent with the amount of the loan. They are there to determine the value of the property, using a different format depending on the type of loan. They will do a few quick check ups, and make sure the home is habitable.

Everyone who purchases a home will need an appraisal, but a home inspection is usually optional. However, we recommend both of these to ensure a truly satisfactory home buying experience.

If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!