When purchasing a home there are many things that can be overlooked. A thing that one must keep in mind when buying a house, especially for first-time home buyers, is the differences between an Appraisal and an Inspection. A Home Appraisal and a Home Inspection are reports based on the inspection of a home but they each have different requirements or elements to them. An appraisal is used to determine the market value of a home and is required by the mortgage lender. An inspection is a more detailed evaluation of the home usually requested by the home buyer and is not required by the lender.
When a home buyer needs to borrow money, known as a mortgage, the lender will require an appraisal of the home to provide a more accurate estimate of the home’s value. Home appraisals are usually short and do not take much time. The real estate appraiser will assess the actual home as well as provide a comparison of homes that have been sold in the same neighborhood, usually within the last year.
Home inspections are more detailed and are requested by the home buyer since they are not required for the home seller to provide. A home inspector will evaluate the details of the home like the AC, plumbing, electrical, and other areas alike. Though they are not required, home inspections are strongly recommended so that the buyer has a more accurate depiction of the property that they are buying.