If you haven’t bought a home before, you might not know the difference between a home inspection and an appraisal.

Home Inspection

A home inspector goes through your house and looks for potential problems, particularly in big ticket areas like the roof and your air conditioner. Many people get a home inspection before they put the house on the market, because it is better to be aware of any problems and get them fixed before you hit the market. Many house buyers get a home inspection when they are making an offer on a house to make sure they didn’t miss anythings. Many times people make an offer on a house contingent on a satisfactory home inspection.

Appraisal

An appraisal is made when a professional appraiser places an arbitrary value to a house based on factors such as number of square feet, amenities and comparable prices of houses that have sold nearby. Sometimes a homeowner gets an appraisal before they put their house up for sale to make sure that their asking price is sensible. If a mortgage is involved, the mortgage company usually requires an appraisal before the grant the mortgage, to make sure that they don’t lend more than the house is worth.

Similarities

• Both appraisals and home inspections require a trained professional to visit the home to fulfill a checklist
• Both are usually paid for by the buyer
• Appraisals and inspections are completed before closing
• Both result in detailed reports that highlight a property’s functionality and integrity.

Differences

• Home inspections deal with the condition of the property
• Appraisals are used for determining the value of the property
• Most lenders require an appraisal so that a fair value is placed on the property. This protects all parties involved.
• Home inspections deal solely with the property being purchased
• Appraisals also take into consideration the comparable sales in the area, market trends, and any other information pertinent to local home sales
• Home inspections are nearly always funded by the buyer. The buyer may pay for all or part of an appraisal.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.