Isn’t a home inspection similar to a home appraisal?
Not at all – an appraisal differs from a house inspection. A home inspector’s function is to study the structural, electrical, mechanical & plumbing in a home and document any problems or safety issues. Although the home appraiser will complete a rudimentary inspection of the subject property, it will be nowhere near as thorough as what a property inspector does. The bulk of the appraiser’s work is focused on market analysis to decide market value based on “assumed” condition of the house.
Do I need a home inspection as well?
“A home inspection report contains very important information about the integrity of the home’s mechanical, plumbing and electrical systems”, said a local Minneapolis MN home inspection company. “You want to know if the home has any problems BEFORE you buy it that way you can either request the issues be fixed, or negotiate your asking price to reflect the issues needing attention.” Furthermore, having a home inspection report ready for your appraisal will help them accurately value the property without having to “guess” at the overall condition.
Ok, so how do home inspections differ from home appraisals exactly?
A house appraiser determines an value opinion for a specific home, while an home inspector enlightens the homeowner as to the condition of certain components of the home. An appraiser examines the exterior of the home to get a basic sense of the exterior condition. They are commonly looking for obvious deficiencies in roofing, siding, and foundation as well as a general assessment of interior conditions with relation to houses in the surrounding community. Since the appraiser is not a engineer, there may be concealed or unapparent physical deficiencies or detrimental conditions of the home at the time of the site visit that they may be unaware of. Knowing the condition and quality of construction of the Subject aids house appraisers when choosing the most appropriate comparable properties. You are encouraged to seek the advice of engineering professionals if you have any inquiries about the structural or mechanical aspects of the house.
Why is it vital to have a home appraisal?
There are many reasons to require home appraisals but the most pressing is the fact that real estate comprises a sizeable portion of the economy so it’s reliable valuation is very important to the overall health of the markets. For an appraiser to develop an opinion of value, the home will be compared and contrasted to other similar houses recently sold on the market. The appraiser’s professional opinion acts as a hedge against risky investments or purchases within current market trends. And because an appraiser is trained to be an unbiased 3rd party in the lending process, this profession serves as a vital “check in the system,” protecting real estate buyers from paying too much for home as well as banks from over lending to buyers.