When it comes to most prospective homeowners, it’s easy to become confused between what an appraisal is and what a home inspection is. While on the outside, the two may share many similarities, they are vastly different when it comes to their purpose, execution, and even outcome. Like every other aspect of buying a home, it’s always a good idea to do your research before taking any first steps. This includes researching the difference between an appraisal and a home inspection and if you need either one. Now, this may sound like a lot of work, but luckily for you, you have us.
What An Appraisal Is
While an appraisal may seem similar to a home inspection, the two couldn’t be more different. One of the major differences between an appraisal and a home inspection is the fact that most mortgage loans require an appraisal before moving forward with the signing.
Appraisals are usually known to be more laid back and lenient than a home inspection, offering a casual process that includes an appraiser walking through a home to spot any prominent or glaring issues with the house in question. Things appraisers look for can include but are not limited to the foundation of the home, any damage to the walls or roof, and even the location of the home to determine the overall worth of that home. It’s important to keep in mind that appraisals are required when it comes to purchasing a home where home inspections are not.
What A Home Inspection Is
Contrary to an appraisal, a home inspection is a thorough walkthrough of one’s entire home. These inspections occur to determine the overall value of a house after it has been lived in. A home inspector will be on the lookout for any glaring red flags. These inspectors are on the lookout for any damage to the ceiling, gas system, electrical system, and even the plumbing of the home.
It’s also good to note that if you are present for the inspection, then the home inspector will take you step by step on the process of their inspection. Unlike an appraisal, the homeowner will usually receive a report of how the home inspection went and if there are any current problems or red flags that need to be taken care of in the home.
The Difference Between An Appraisal And Home Inspection
Most people would be hardpressed to spot the many differences between an appraisal and a home inspection. From why they are required to the specific processes each takes, there is an assortment of differences between them. A major difference between the two is that a homeowner is usually encouraged to go through a home inspection with the home inspector. In contrast, an appraiser usually conducts the appraisal on their own. A home inspection differs as it is an in-depth examination of your home’s condition. This can include any damage to the roof, walls, and even the electrical system. On the other side, an appraisal is a process that determines the market value of one’s home. This is usually required whenever one goes out for a mortgage loan. Aspects that are taken into consideration during an appraisal can include location, the home’s condition, and even the value of similar houses.