Inspections and appraisals are critical steps in the home buying process, and buyers should always do both to protect their own financial interest in a property. While inspections and appraisals serve different functions, they both provide you with the information that you need to avoid any potential financial misstep. After all, your home is one of the best long-term investments that you make. Let’s outline the differences between an inspection and appraisal and how these steps in the home buying process can provide peace of mind that you are making a smart purchase.
What is a home inspection?
The goal of a home inspection is to take a deeper dive into the condition of the home. A licensed home inspector will spend 2-3 hours carrying out a meticulous review of the homes condition. They will look for evidence of water damage, structural issues, pest infestations, etc., and their report will enable the buyer to make an informed decision on the overall “health” of the home. If any potential problems are noted during the inspection process, your agent can negotiate these issues with the seller and perhaps have them fixed or arrange a cost reduction on the home.
What is a home appraisal?
The goal of an appraisal is to determine the market value of a property. A licensed appraiser will perform a walk-through and general assessment of a home, and then compare the homes features, location, etc., with other recent sales in the area to determine a home’s value. A mortgage lender will then use the appraised value to ensure that the loan amount requested by the borrower is accurate.
Navigating the inspection and appraisal process are essential services of a real estate agent. A Wisdom Real Estate agent will always be there to consult, negotiate, and advocate for you during these important processes. After all, our client’s happiness is our top priority, and we strive to ensure that your home purchase is a sound financial decision. Rest assured that we will be there for you every step of the way.