Inspection VS Appraisal
Melissa Gootee
Inspection VS Appraisal
Both inspection and appraisal are important steps in the buying or selling of a home, but they serve different purposes. **Inspections and appraisals are both important steps in the buying or selling of a home, and they can provide valuable information to buyers, sellers, and lenders.
An inspection: This is a visual examination of a property's structure and systems performed by a certified home inspector. An inspection is performed to identify any issues or defects with the property that may jeopardize its safety, functionality, or value. The inspector will provide a detailed report outlining any problems or potential problems discovered, as well as any recommendations for further evaluation or repairs.
This is a cost to the consumer/buyer after signing a purchase agreement on a home. This is not required to purchase the home, but I believe it is well worth the money given the amount of money you will be investing.
In a seller's market, we see buyers conducting inspections but not making them contingent on the sale of the property. In short, they cannot cancel their purchase agreement because of something discovered during the inspection period.
We are also seeing some buyers conduct their inspection after the closing to learn more about how their home works and how to maintain it to its full potential.
Appraisal: An appraisal is an evaluation of the value of a property that is typically performed by a licensed appraiser. The goal of an appraisal is to determine the property's fair market value based on its location, size, condition, and other factors. Lenders need this information to determine how much money they are willing to lend for the purchase of the property.
**This is required if you intend to obtain a mortgage for your new home. After you have an executed purchase agreement and have removed all contingencies on the home, the cost is paid to the lender, typically around $500-$600 (example:Inspection). This is part of your closing costs which are typically around 3% of the purchase price (More on This Later).
In short, an inspection identifies problems with a property's structure and systems, whereas an appraisal determines the property's value.
Are you thinking that now or in the near future maybe be time to buy a home? You can Contact Melissa directly or you can Download my Ultimate Buyers Guide.
If you are thinking of BUYING in today's market I would love to help you. I have great people on my TEAM that can help you learn more about mortgages and how much you can qualify for and afford.
Click the link above to find out what you qualify for or simple call Jane or Zach Johanns with New American Funding.
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