Property Inspection vs. Appraisal
When it comes to purchase a home, there are a lot of inspections, appraisals and talk about what is being looked into before you dive right in and purchase the property. There are various reasons to get both an appraisal and an inspection. Understanding the differences between each one can provide you with a way to understand how each of them works and why you might need them for the home you’re going to be purchasing.
The appraisal can tell both the buyer and the seller more information about the home, but it is a task that is performed to protect the lender of the mortgage loan that is being taken out. The lender does not want to provide someone with a large lump sum of money for a home that is not worth that amount of money. This is why an appraisal has to be done to safeguard the lender and their mortgage.
The appraiser will use a series of factors that weigh in on their decisions and what they write down. They do not think about the state or cleanliness of the home, though they will notice if a home has been neglected or not. They will take note of the condition, the size, the neighborhood, close proximity to schools and other amenities, the prices of the other homes in the neighborhood and whether or not the home has major flaws.
Those purchasing the home using an FHA mortgage have to have all of these major flaws disclosed to them during the buying process and if they’re not, this can be a cause to not have the home covered under the mortgage loan. Specific standards are required for a home to meet the minimum requirements of an FHA mortgage.
The lender is not going to grant the final okay for the buyer to obtain the mortgage loan until this process is completed and the home is up to satisfactory standards. The appraiser is there to formulate how much the home is worth and if that is around or less than the cost that the home is being sold for. It is not a substitute for a home inspection.
A home inspection is something that is strongly recommended that a potential buyer get on a home that they’re thinking of purchasing, though it is not required.
The inspection is done through a professional that has experience with homes and their interior and exterior structures. They will go through the house and let the buyer know more about any and all problems that might become an issue or are safety hazards.
The inspector goes through the rooms, looks on the roof, in the basement, in the attic, the siding, they will look at the electrical systems, plumbing, gas, appliances and all of the other components of the home that come together to make the home work. When something does not look right or perhaps is not how it should be, they will make note of this. They will also ensure that the person knows about any major flaws of the home.
The professional statements from the inspector should be the basis that helps the potential homeowner decide if they want the home, or not. This can also be a great way to have the current owner and seller of the home go through and fix any of the issues that might be too big for the new homeowner to handle or pay for when they purchase the home. Sometimes the seller of the home is able to go down on the price they’re asking for it so that the new owner can have the problem resolved without the seller needing to do so before they purchase it.
The inspection is a great tool for so many that are unsure of whether or not the homes out there are structurally sound. When this is the case, it is always good to consult with a professional that can let you know more about the home and the structural condition that it is in. [bctt tweet=”it is always good to consult with a professional that can let you know more about the home and the structural condition that it is in.” username=””]
Having an inspection done is also not a guarantee that they will find all of the problems wrong with the home. It is also not a warranty that protects you from something breaking once you purchase the home and move in, it is just for your knowledge and benefit to help you make a decision on whether or not to purchase the home.
Regardless of which is happening, they are both essential parts of buying or selling a home. They are both warranted and can provide more insight from both ends letting the buyer, the seller and the lender know more about the home in question. When switching from person to person, this knowledge provides everyone with a way to decide if the home is right for them or not.