Home Inspection v.s Appraisal
Buying or selling a home can be a long and confusing process. When considering all of the steps you need to take, there may be a temptation to try to cut corners. One thing homeowners and homebuyers are often confused about is the difference between a home inspection and a home appraisal, and may wonder, are they the same thing? Are they necessary? The short answer is that no, inspections and appraisals are not the same thing, and yes, they are both important! Here are the differences between a home inspection and an appraisal, what each of them accomplishes, and why you need them.
What is a home inspection?
A home inspection is an in-depth examination of a real estate property. Typically, an inspection is arranged by a buyer for the purposes of getting a deeper understanding of the property, which enables them to assess potential risks and make an informed decision. However, home inspections can also be valuable to sellers to help them prepare for listing. A home inspection is not concerned with the market value of the home like an appraisal; it is concerned with the “condition of the home.”
The length of the examination depends on the property but generally lasts between 90 minutes to 3 hours. The inspector will go to all of the accessible parts of the home and do a detailed examination, which includes looking for damage or potential hazards. Then the home inspector will create a report that can help guide the buyer or seller through any fixes needed on the house, as well as anything that may become a problem in the future.
What is an appraisal?
An appraisal is focused on evaluating the value of a real estate property for a lender. An appraiser will do a walkthrough of the house and check that everything on file for the property is correct (checking how many bathrooms and bedrooms there are, confirming the address, etc.) They will look at both the interior and exterior of the home, and take pictures, measurements, and notes. They will then go and do additional research that will help decide the value of the house, such as learning about the neighborhood the house is in, the school system, and the prices of comparable houses. At the end of this process, the appraiser will produce a report that gives a fair market value for the property.
Which one is best for me?
While there are some similarities between the two processes, home inspections and appraisals serve different functions that work in tandem to produce the best results for both sellers and buyers. A home inspector and an appraiser offer an unbiased, neutral third party that makes no commission based on the sale of the house. This neutrality helps ensure that you will be getting an honest, professional perspective that can empower you! If a bank or lender is involved, then an appraisal will probably be required, and for buyers, a home inspection is an important and worthwhile investment to make when choosing your future home.
Why Choose Forever Home Inspection?
We’ve performed over 1,200 home inspections.
We offer free termite inspection with each inspection. Every inspector on our team is certified in both home inspection and termite inspection.
We have a transparent, simple flat-rate pricing, and an easy-to-use online scheduling system that means no hassle for you!
We offer six types of inspections based on your unique needs!
