"If there is something wrong with the house I am buying, the appraiser will find it, right?"
"What is the house appraised for? You can look on the tax roll and find out, right?"
At least once a week I find myself clarifying the definitions of Appraisal, Inspection and Assessment. Here are the differences:
1. Appraisal
Appraisals are for lenders. The lender requires an appraisal for three reasons: 1) to estimate the market value of a house 2) to make sure the house meets minimum property standards and 3) to make sure that the house is marketable.
2. Home Inspection
The Home Inspector 1) evaluates the physical condition, structure mechanical systems and overall soundness of the property 2) identifies items that need to be repaired or replaced 3) estimates the remaining useful life of the major systems, equipment, structure and finishes
3. Assessment
This is the value placed on your home by the local Tax Assessor, for purposes of determining a value to base your property taxes on. In Kentucky when a property sells, your tax assessment is typically what you paid for it. By law, properties are to be re-evaluated every 4 years to see if the assessment should be raised. This is a very unreliable way to determine the actual market value of a home and should not be confused with the "appraised value"
In a nutshell:
Appraisal - Bank value
Assessment - Tax value
Inspection - Property Condition
If you have any other real estate questions, please consider me your resource for all things real estate in Owenboro, KY. Call or text me at 270-903-2167
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