If you’re planning to sell your home or have it refinanced, you’ve probably heard about the importance of appraisals and home inspections. These two things sound almost like the same thing, but there are some crucial differences. Since you should ideally have both an appraisal and a home inspection completed on your home, here’s what you should know about them and what they mean.
Appraisal vs Home Inspections
A home appraisal is intended to determine the value of your home. It is often used to confirm the value of your home when you apply for a mortgage, and it’s probably the best way to determine the listing price when you put your home up for sale. It often involves taking a look at other homes as well and comparing their value to the value of your home. An appraisal is especially crucial when you’re in the midst of a sellers’ market and you have the freedom to drive the price of your home up. Keep in mind that if you schedule an appraisal to apply for a mortgage, you will only be able to borrow based on your home’s value.
While a home appraisal is intended to determine the value of a home, a home inspection is meant to determine the current condition of a home before a sale is finalized. Most buyers schedule an inspection of homes they are interested in purchasing so they can be sure that their potential new home is safe and not in need of any major repairs. If the inspection does turn anything up, the buyer may be able to renegotiate the price based on any repairs that need to be made. The seller can also schedule a pre-inspection of their own to catch any improvements that need to be made before the house sells.
As you could probably guess, a home inspection is much more in-depth than an appraisal. Not that a home appraiser can’t be thorough, but an inspection requires a much closer look at things such as a home’s plumbing, electrical system, roof, and anything else that may not be apparent at a glance.
A home inspection and a home appraisal are both important parts of the home selling process. An appraisal is crucial to setting the price of a home and determining the value when the owner applies for a mortgage, while the inspection determines whether a home is safe or if it needs repairs. Whether you are buying a new home or selling a house you’ve had for years, don’t skip out on either of these crucial steps. If you need any assistance with setting up an appraisal or a home inspection, a real estate agent will be glad to help you.