What Is The Difference Between a Real Estate Appraisal and an Inspection?
When you are buying a home you will likely get both of these done.
An Appraisal is ordered by the lender when you are obtaining a loan for a property. They buyer usually pays for this, but it is negotiable. The purpose of an appraisal is to get an estimate of value of the property. The appraiser will look at market conditions as well as comparable properties in the area to help determine value.
The appraiser will note anything of significance that would affect the value of the property. You will get a very detailed report that shows how the appraiser came at that value.
The inspection is ordered by the buyer (sometimes sellers do them before listing the property), and paid for by the buyer. The inspection is optional but most all agents will recommend them. During the inspection, the inspector will "inspect" the home. Every inspector is a little different, but the goal of the inspector is to look over everything in the home and note anything that might need repair or anything of concern.
You can also hire an inspector for different tests that you may want to do in your home such as radon, mold, etc...
The inspection is done for the benefit of the buyer to help clarify the condition of the home. The appraisal is done by the lender for the benefit of the bank so they know the home has the value they are loaning in case you default on the loan.
If you are getting a loan, an appraisal is required, an inspection is not.
I hope this clarifies the difference between a real estate appraisal and inspection.
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