As a realtor, I've noticed that a lot of my potential buyers and clients don't know the difference between a home appraisal and home inspection so that's what prompted me to write this blog post so I can explain the difference. Below, you'll find the most common questions I'm asked in reference to home appraisal and home inspection.
What the difference between an appraisal and an inspection?
An appraisal estimates the value of the home. A certified appraiser goes out to the home you're interested in buying and evaluates the value of the home based on the home's features and comps in the area.
An inspection is used to determine the home's condition and to uncover potential red flags.
Am I required to get a home appraisal and inspection in order to get a loan?
A home appraisal is REQUIRED by the lender in order to obtain a conventional or government backed loans.
A home inspection on the other hand is NOT required to obtain a loan. It's HIGHLY RECOMMENDED to buyers so that they'll know the condition of the home they're considering buying.
I'm buying a NEW CONSTRUCTION HOME, should I get an inspection done?
ABSOLUTELY...You should ALWAYS have a home inspection done so you'll know exactly what you're getting whether it's a resale or new construction home. You don't ever want to make a blind purchase and then end up with a money pit.
Who pays for the appraisal and inspection?
Both appraisal and inspection are paid for by the buyer(s).
How soon should I have the appraisal and inspection done?
Normally, your lender will schedule your appraisal after your loan is fully approved. As for the inspection, you should have it done before your due diligence period ends.
I hope this answered some of your questions in regards to the difference between home inspection and appraisal.
As always, happy home shopping and if you're in the market to buy or sell, I'm your real estate home girl.
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