There’s a reason why people hire home inspection professionals because they’re good at what they do. And they also know the differences between an appraisal and an inspection. But, as a customer, do you know what an appraisal is all about and its differences from home inspections? We bet you not.
But, fret not as we’re here to assist you in this situation. Therefore, in this guide, we’ll be taking a look at the similarities as well as the differences between appraisals and home inspections. So, without much pondering around, let’s jump into the topic right away.
Who Is Responsible For Ordering Inspections & Appraisals?
According to a professional home inspector in Sea Girt, an appraisal can be defined as a process of property valuation, such as business, real estate, antique or even a collectible. So, before the lender lends the money (in this case the bank) to the borrower (in this case the home buyer), the lender wants to know whether the house is worth the loan amount. Since the home that the borrower will be buying will be collateral to the loan, knowing the overall value is very essential. And that’s why an appraisal takes place.
Compared to inspections, the lender only can order for the appraisal process and the buyer will have no say in the matter. But, in case the appraisal returns are lower than expected, then the borrower can request the appraisal to be done from a different source.
Who Is Responsible For Paying For These Services?
At the end of the day, it’s the buyer’s duty to pay the fee for the appraisal. And in case the buyer orders a new appraisal because the earlier one was unsatisfactory, then the fee for the new one will also have to be paid by the buyer.
What’s The Significance Of Inspections And Appraisals?
The main purpose of an appraisal process is to know whether it’s right for the lender to loan the money to the borrower for the purchase of the house. As a result, a lot of other factors come into play. The appraisal process will proceed to look for the values of similar properties in that same area as well as take data from the recent sale figures nearby, ultimately concluding. Moreover, the condition, as well as the age of the house, will also be considered for the test.
The appraiser only looks for major defects inside a home compared to a full hands-on inspection for the entire house in case of home inspections. Therefore, home inspections are much more in-depth and thorough, compared to an appraisal process. So, even if you don’t carry out an appraisal process, a home inspection process is a must.