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Appraisals and Home Inspections: What’s the Difference? Summerland, Penticton Okanagan Real Estate and Homes for Sale

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Commercial Real Estate Agent with BusCom Real Estate Services

Appraisals and Home Inspections: What’s the Difference?  Summerland, Penticton Okanagan Real Estate and Homes for Sale


















Variable rate mortgages from as low as Prime minus 0.65%.

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*Note that Prime rate may vary according to lender. 

Lower rates may be available in certain regions, or to those with higher credit scores or higher net worth – be sure to check with your Invis mortgage professional for full details.    

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Appraisals & Home Inspections


Appraisals and Home Inspections: What’s the Difference

A home is one of life’s most important purchases.  Before committing to a purchase it makes sense to learn as much as possible about any property you wish to acquire.  Understanding the important differences between an appraisal and a home inspection will help you to obtain detailed information about the home’s value and condition.  

An Appraisal 
An appraisal allows the lending institution to determine if the property being purchased is suitable as security for a mortgage. For conventional mortgages, a lender will in most cases require that a professional third party assess the property to ascertain its current market value.  In the case of a “high-ratio” mortgage (with a down payment of less than 20 per cent), the mortgage insurer will go through its own internal appraisal process.  In particular, lenders and insurers are concerned that the property (in terms of its age, condition, and remaining economic life) constitutes a good match with the borrower and their ability to repay the mortgage.  An appraisal does not usually include a detailed property inspection.

A Home Inspection 
A home inspection is not used to determine property value, but will provide an assessment of the physical condition of a property.  A well-trained home inspector will perform a comprehensive visual inspection to determine the condition of the building and all of its major systems (for example the roof, structural, heating, plumbing and electrical systems).  While an appraisal is intended to provide the lender with sufficient information to decide on mortgage financing, a home inspection will hopefully reveal to a potential homebuyer whether the building and its systems are in sound working order.  If there are outstanding issues, a good inspector will provide the potential purchaser with a schedule outlining the estimated costs and when  these repairs will need to be completed.  

Your Invis mortgage consultant and your local realtor can provide further advice about how home inspections and appraisals can help you make a wise purchase. 

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Raymond MAASKE, BBA, CCC, ACRE

 

 

 

Confidential Business Broker & Commercial Real Estate Services

 

 

 

Direct: 250.878.2218

 

 

 

Email:  RaymondMAASKE@gmail.com

 

Website:  www.BusComRealEstate.com

 

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We are a full service CONFIDENTIAL Business Brokerage & Commercial Real Estate Company specializing in the sale of business and commercial property. We help business and commercial property owners sell their business and commercial property in A CONFIDENTIAL & PROFICIENT MANNER to a QUALIFIED BUYER.

 

 

 

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