Home Appraisals vs Home Inspections
When involved in a home sale, appraisals and home inspections are both typically part of the process. Appraisals and home inspections have some similarities but there are also key differences between the two processes.
Home Appraisals
Appraisals estimate a home’s value for the mortgage lender.
Appraisers are licensed third parties who look at a number of variables such as the location of the property, its condition, size and recent sales of comparable properties to determine an estimated value fo a home. The appraiser’s report helps lenders determine whether or not they would like to approve a loan.
Benefits of an appraisal:
- Helps you get approved for a mortgage.
- Estimates the value of a home to help you determine if you are paying more for the home than what it’s worth.
- Depending on market factors, appraised value can provide an opportunity for negotiation.
Home Inspections
Inspections assess a home’s current condition and uncover any potential red flags for the home buyer.
Inspectors are typically hired by the buyer to examine the home and prepare a report of their findings. The inspector’s report helps buyers determine whether or not they would like to pursue a purchase.
Benefits of an inspection:
- Helps you protect your investment and reduce any potential risks.
- Helps you determine whether or not you should pursue a purchase.
- Provides you with a detailed understanding of your home’s condition.
- The details of an inspection report can provide an opportunity for negotiation with the seller.
Do you have questions about home appraisals or home inspections? Please contact me for more information – I’d be happy to help.