What Is The Difference Between An Inspection And An Appraisal?
Both are functions of purchasing a home and they both get confused with one another because of some similar sounding circumstances.
A home inspection is something that you're going to want to have once you put a purchase agreement together on a home. The inspection takes by a home inspector of the buyers choosing. They are there to look through the entire home, point out any deficiencies but also explain to you how the home works. You should look at this as a guide to how your home works as well. This is not to be confused with the time of sale or truth in housing inspection from the city. The city looks at the home in a much different way than an inspector would. They're looking for things like below minimum requirements for code. Not that that's important but typically homes that were built in the 30s aren't to code now like the ones that are currently being built.
An appraisal happens after you've had your inspection and your still moving forward and wanting to purchase the home. At that time the loan officer works with the bank that you're getting the loan from and they send out in order to have an appraisal done. If you're buying the home through an FHA loan the appraiser has double duty. Not only are they appraising the value of the home but they're also looking for specific items that may be a concern for the FHA. It's a quasi-inspection that gets a lot of people confused. They're typically looking for things like peeling paint. Again not to be confused with a home inspection.
The appraiser's job is to come out take a look at the home, pull all the comparable sales and determined that the value that your purchasing the home for is the same as what the purchase agreement is.
Both of these functions need to be done on your behalf when you're purchasing a home but they're two totally different situations and should be done in order.
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