What Is The Difference Between an Appraisal & a Home Inspection?

Arica Song

Call: 541-736-6314

Keller Williams Realty- Eugene & Springfield

Eugene Home Finder

 When purchasing a home your loan officer will assist you with ordering an appraisal.  You can never pay more for a home than what it is worth simply because a bank will not loan you money on a property that does not appraise for the agreed upon sales price.  Often when a home does not appraise for the sales price the seller either reduces his/ her sales price, the buyer pays the difference of the appraised price versus the agreed amount "out of pocket" or the sale is cancelled and the seller keeps his property.

I always encourage cash buyers working with me to get an appraisal.  It is nice to know what a 3rd party feels the property is worth and it would be terrible to pay more than market value for a home!

Typically a home inspection is conducted before an appraisal.  Finding a good, reputable home inspector is very important.  I have went through several home inspectors of the years and find that those inspectors who take 3-4 hours to go over the home with the buyer and take their time, tend to do a good job. After all, this is the largest purchase you will probably make in your entire life! 

The home inspection is conducted for a buyers personal information and is not required for the lending company however always a good measure to take.  Home inspections often bring up items that may need repaired prior to the appraisal.  

Meeting with your Realtor to write a Repair Addendum is very important.  Repairs are often requested of the seller if the property is not in shortsale.  Repairs are made and the Appraiser is sent out.  If repairs are not made prior to the appraisal, an appraiser may need to make more than one trip out to the property to ensure the home is safe and in good condition.  This may be an added expense to the buyer.

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