What’s the difference between a home inspection and an appraisal?
An inspection is a crucial step in the home buying process. It is a way to assess the condition of a home before finalizing the transaction. It’s a different step from an appraisal which is a professional assessment of the market value for the home you want to buy. In most cases, a lender will order an appraisal to confirm the value of a home before lending money to a buyer. Home InspectionHere is the main difference between an appraisal and an inspection. Bankrate says that while appraisals help you determine a home’s value, inspections allow you to understand the home’s condition. You as the buyer can negotiate with the seller any issues that may arise during the inspection, such as the age of the roof or the condition of the HVAC system. Home AppraisalThe National Association of Realtors explains that a home purchase is usually the largest investment a person will make. Get your investment appraised to protect yourself! An appraiser will inspect the property, analyze data, and then report their findings to the client. In a typical home purchase, the lender will order an appraisal to help them decide whether to offer a mortgage. The appraisal is important because it will ensure that the bank does not loan you more money than the house is worth if you are using a mortgage. This is particularly true in today’s sellers market, where low inventory can lead to bidding wars and drive home prices higher. When sellers are in this position, they may believe that they can set the price of their home at whatever they want, assuming that other buyers will pay more. However, lenders will only lend money based on the house’s value. This helps to keep home prices under control. Your trusted real estate professional can help you negotiate any additional price reductions if there is ever any confusion between the appraisal and sale price. You can get the expert guidance needed to navigate the homebuying process by working with a real-estate professional.
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