What is the difference between an appraisal and a home inspection? Despite the crucial role they play in ensuring properties are fairly priced, there is a distinct lack of awareness around the processes followed in carrying out an appraisal.
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Most of us will have a real estate appraisal done at some point in our property-owning lives, and yet, as common as that experience is, there are many misconceptions about what an appraisal is.
An appraisal is different than an inspection as it is more focused on the value of the home than the condition. While an appraiser will typically make note of safety and soundness concerns they observe, their primary role is to focus on what your house is currently worth in.
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· When buying a home, it can seem like there is an endless checklist to complete before you finally get the keys. An appraisal and a home inspection are usually on that list, and if you’ve never gotten either one before, they can seem like pretty much the same thing.
The Home Inspection. A home inspection, while being a great idea, is not required. You can choose to forgo a home inspection – the cost of which falls generally between $200-300 – but you might find the condition of the home will cost you much more than you bargained for.
Now you know what a home appraisal is and what purpose it serves. Let’s look at how the value of your home will be determined. Also Read: How to Find The Best Mortgage Lender in MN. The Difference Between A Home Appraisal and Home Inspection. Some people may confuse an appraisal with an inspection.