Home Inspection vs. Home Appraisal: What Homeowners Need to Know

ome Inspection vs. Home Appraisal: What Homeowners Need to Know. Home inspection and home appraisal are critical when it comes to sale a house.

If you’re looking to put your home on the market, you’ll want it makes a great impression. But how you can achieve that? How can you make potential buyers feel they’re making the right choice?

Sellers tend to focus on pleasing the buyer. However, the other two persons play important roles in the buying-selling process. They are the home inspector and the home appraise.

Many homeowners don’t know what the difference between them is. Follow reading, and you’ll know what you need to know about home inspection and home appraisal.

The Basics of home inspection and home appraisal

These two processes involve the evaluation of a home from both the inside and outside. The job of certified inspectors and appraisers is to verify the present condition of a property.

What is the difference between them? An inspector looks for function, while an appraiser looks for the home’s value.

These processes are similar. Still, you must complete both before selling your home.

Thus, take into account what Realtor.com says about it:

“The appraiser formulates an opinion of the property’s value for the lender…whereas the inspector keys in on the home’s condition,”

So, an appraisal is not a substitute for a home inspection.

The International Association of Home Inspectors defines a home inspection as follows:

“A non-invasive, visual examination of the accessible areas of a residential property, performed for a fee, which is designed to identify defects within specific systems and components.”

Besides looking for repair costs, a home inspection looks for issues that can have health and safety consequences.

In this sense, Susan Borelli, a D.C. Metro area realtor for RE/MAX Gateway, says that home inspections give homeowners “the opportunity to ask for repairs or to void the contract if the home inspector finds things that were unexpected or high-cost repairs.”

For the seller, the home inspection reveals which repairs are necessary to ensure the sale goes through.

It’s important to note that the inspector does not represent the buying or selling agent.

What You Should Know about Home Appraisal

Home appraisals give the buyer and seller the chance to discuss the details of the sale.

According to Redfin, “an appraisal is the estimation of a home’s market value by a licensed appraiser based on comparable recent sales of homes in the neighborhood.”

Moreover, a home appraisal considers external features such as the lot size and distance to desirable public facilities.

Therefore, the lender’s underwriter uses the appraisal price to ensure the home’s value is equal to or higher than the loan amount. If the final sale price is higher than the appraised value, the seller and buyer can renegotiate it.

Realtor.com explains that the appraiser’s primary mission is to protect the lender. Lenders don’t want to own overpriced property,”

Why You Need a Professional

Some upgrades or repairs are obvious. Yet, other improvements or repairs are not evident, or their magnitude is not easy to value. That’s why home inspections and appraisals are necessary.

  • Windows: windows may be an important health and safety issue,” says Borelli. “If they don’t open and close properly, it can put someone in jeopardy,”
  • Electrical system: A faulty electrical system may represent a safety hazard. Inspectors and appraisers can detect a problem like this and alert both the buyer and seller.
  • Heating and Cooling: An inspector can detect not evident issues in your HVAC system. Likewise, an appraiser can point that the age of specific components.
  • Plumbing: An inspector will know what potential plumbing-related issues look for. Meanwhile, an appraiser will look for things such as higher-cost copper plumbing.
  • Roofs: roofing problems are not always visible from the ground. An inspector can estimate the life expectancy of a roofing system.

Are You Thinking of Selling Your Home?

If you want to sell your home, replacing your old roof can make a big difference.

Contact Mississippi Landsource or Doug Rushing Realty or visit us online.