Before making any investment, it’s wise to do a thorough check if your investment involves any risk and act fast on it before it’s too late. The same is applicable to a home investment. Fortunately, there are systems in place that can aid you in the decision-making process of your home in regard to the safety of your home, and making use of that could be the best possible decision that you take for your home.
Home inspections and Appraisals are two such systems that assess the quality of your home both from the buyer’s perspective and the seller’s perspective. It gives different viewpoints on the quality of your home, the potential cost of the property, and any high-priority action items that need to be fixed fast.
So if you are under an apprehension on what to choose between the two, we recommend both. Let’s delve into the details.
An appraisal is a mandatory process for almost all mortgage loans that helps determine the value of your home. The appraisal usually determines the value of your home by drawing parallels factors like home location, condition and the value of the similar and recently sold houses in the area- known as comparables. First the appraiser walks through the home, researches on the comparables and then creates a final appraisal report.
This report is considered very critical in the final decision process of the lender to determine the value of the home and approve the loan amount. There’s a bar on the appraisal value below which either the seller has to pay with the difference out of the pocket, otherwise have more equity in the home.
Appraisal helps you get approved for a mortgage and ensures that you are paying the exact price worth it.
It helps reason out the drop/rise in the sale price of the home if the appraisal comes in low.
It ensures you pay the right amount of property taxes.
A home inspection is oriented towards the quality of your home rather than the market value of the home. But this is something, where the buyer/seller can uncover major quality issues that influence the final value of the investment. Here you will be able to determine the current condition of the home and unveil the potential red flags. The home inspector examines much more than the physical attributes of a home like the structure, roof, attic, HVAC, radon presence and any other potential issues that could be a problem in the future. Having a home inspection done helps you secure your health, safeguard your investment and determine the deserved price.
After the inspection, the home inspector gives you a report of the findings that details the areas inspected and anything that requires repair. Based on the findings, you may want to negotiate with the seller to complete the repairs or pay for the repair costs.
It helps you secure your investment and identify red flags before hand.
It aids in the decision making process and then make you feel confident.
It provides a better understanding of your home’s condition including the intricacies of your home.
If you’re building a home, it ensures its safely built.
It helps provide leverage while negotiating with the seller.
In a real estate undertaking, both the home appraisal and inspection benefits the Buyer, seller and the mortgage lender in terms of ensuring that the home is worth the price and safe to live in. It’s an important factor in deciding whether to move forward with the purchase or walk away.
Both services cost the same range, and depend on the home’s size and special circumstances. Appraisals are typically done without the presence of the buyer/seller, and the appraiser reveals the findings though a comprehensive report that outlines the process. On the other hand, in a home inspection, the buyer is also encouraged to walk through and take a tour of the issues pertaining to your home quality.
Below outlined is a few differences between the two to give you a clear direction:
Home appraisals are required by a lender whereas a home inspection is required by the buyer.
A home appraisal in lieu of the quality aspects can only spot things visible to naked eye whereas home inspections require use of special devices to have an indepth-look at the potential issues.
In case of home appraisal, usually the appraiser goes through the process alone. But in case of home inspection, the buyer is encouraged to walk through the process, thereby getting educated about the quality of their home.
A home inspection only looks at the quality of your home. A home appraisal considers quality of home, the comparable home prices and aspects of the surrounding areas.
The inspector and appraiser have a different set of skills, are trained and certified in different processes and have different areas of expertise.
We are Magnified Home Inspectors, the new-age Home inspectors who believe that Home Inspection is a learning experience, and an education every homeowner must pursue. A home inspection is a smart investment that helps you make informed decisions about your home quality before purchase or an accommodation. With a home inspection, you can identify potential problems, fix small home quality issues before they turn big and as a result increase the longevity of your investment. We are a trusted team of Home Inspectors in Connecticut who use top of the line contemporary equipment, technology and tools that allow us to inspect your property beyond the regular inspector checklist.
Licensed, Compliant and Certified Services
Trained Home Inspectors who served 1000+ customers
360* Home Inspections that help you identify potential and hard-to-look problems
Comprehensive Report in a 24-hour turnaround time
All-round support prior and post your Home Inspection
Pre-inspection, phase inspections and standard pre-closing inspections
Added Home Inspection Services upon Request
Have questions? Call us at 8609800316 for support and assistance.