Home inspection vs. appraisal is a common and important topic for new homebuyers – but how are they different?
While each serves its own purpose, both provide useful information to buyers, sellers, and lenders. In this article, we’ll explain the differences between a home inspection and a home appraisal and why they’re important for anyone looking to make a purchase.
What is a Home Inspection?
A home inspection is a thorough examination of a home’s condition and systems by a trained and licensed inspector. The inspector will examine the structure, electrical, plumbing, heating and cooling systems, roof, attic, and other major components of the home. They will also look for any potential safety hazards, such as carbon monoxide leaks or radon gas. The inspector will provide the buyer with a detailed report of their findings, including any major issues or repairs that need to be made.
It’s important to note that a home inspection is not the same as a code compliance inspection, which is typically required by local building codes. A code compliance inspection looks at whether the home meets certain building codes and safety standards, while a home inspection looks at the overall condition of the home.
How is a Home Appraisal Different?
A home appraisal is a professional assessment of a home’s value, typically conducted by a licensed appraiser. The appraiser will look at comparable home sales in the area, as well as factors such as the home’s age, condition, size, and features. The appraiser will then provide an estimated value for the home, which is used by the lender to determine how much money they are willing to lend for the purchase of the home.
It’s important to note that a home appraisal is not the same as a home inspection, and the appraiser will not be looking for any potential issues or repairs that need to be made. However, an appraiser may note any obvious issues, such as a leaky roof or a broken window, that could affect the home’s value.
The Bottom Line
In conclusion, a home inspection and a home appraisal are two important steps in the home-buying process that serve different purposes. A home inspection provides buyers with detailed information about the condition of a home and any potential issues, while a home appraisal provides an estimated value for the home that is used by lenders to determine how much money to lend.
If you’re thinking of buying a home, it’s important to have both a home inspection and a home appraisal conducted. Contact a Total Mortgage loan officer today for more information on how to prepare for these important steps in the home-buying process.
Source: totalmortgage.com