Appraisals and inspections are not the same, although they may start the same way. Home inspections, or "appraisal" as it is also known, typically focus on identifying problems or damages to the property that need attention before a mortgage can be approved for purchase. Appraisals on the other hand focus on evaluating a property based on how it fits with its surrounding homes. Home inspectors typically go over more area than an appraiser, but they are not limited to it.
Inspections and appraisals both look at two different factors of a potential house s purchase, with appraisals usually looking into defects in a house and repairs to the structure while inspections mainly focus on overall appearance and condition. Home inspectors will give you a more in depth look into the home, examining rooms, bathrooms, ceilings, floors, doors, windows, and other amenities of the property. They are often called upon to come into homes that are up to six units and beyond, although they can also be called upon to evaluate homes that are more than ten units. Appraisals are usually required before any mortgage is processed, so if you are interested in purchasing a home it is best to get this done before walking through the door.
Inspectors and appraisers do not go to homes to simply tell potential buyers how much it is worth. They are there to make sure the buyer gets the best deal possible. While an inspector is not allowed to make recommendations (some states don't allow their inspectors to make recommendations) the inspector is there to point out specific issues and to offer advice about how to fix them. If a buyer does not want to pay for repairs, the inspector will offer suggestions and options. In some cases, a buyer might have to make changes to the existing structure of the house to make it comply with code.
Appraisals and Inspections differ from home inspections, in that home inspections are usually performed by professionals who are licensed and bonded. Appraisals, on the other hand, are usually performed by a non-licensed or unlicensed individual who is not properly bonded. This is why home inspections are done by professionals. Home inspectors are not as thorough, because they are not trained in the same things that Appraisals are. Appraisals are typically done after a home has been purchased and to determine the overall condition of the property. Home inspections are usually done before a mortgage is offered to a seller.
Inspectors will find items like cracks in flooring or ceiling tiles, leaking faucets, plumbing issues, and similar problems. They will also check for mold, mildew, and structural problems. Some areas that require home inspections include the attic, basement, and garage. Appraisals are generally done during the first visit of the inspector and then again at the closing date. Buyers should thoroughly research their potential agent before hiring them to conduct the inspection.
Appraisals and Inspections can be done for different purposes. The primary purpose of an Appraisal is to determine if the property being sold meets the criteria defined by the lender. The secondary purpose is to make an accurate assessment of the cost of purchasing the home. There are many different methods that are used to determine the value of a property. These methods are known as Appraisal Processes.
Appraisals and Inspections can also be done by a qualified appraiser. The Appraisal consists of two parts, the Appraisal itself, and the inspection. The Appraisal is done by the appraiser or appraisers who are hired by the lender to conduct an Appraisal and Inspection. Appraisals are generally performed on a walk-through and in house. Walk-through inspections typically take longer and are more intensive, involving lots of site investigation.
All home appraisals and inspections are for a different purpose. The purpose of an Appraisal and Inspection is to determine if the price of the house meets the lender's criteria. Appraisals and inspections are conducted for distinct purposes and should be approached for a different purpose.