Here’s something you may not know: A home inspection is not the same thing as a home appraisal. This is not a “you say tomayto, I say tomahto” kind of a thing — they really are two distinct things with two different purposes. Both are critical to the home-buying process.
The home inspection is to determine the working order of the property and make sure that it’s in good condition. Home inspections will help identify potential issues in everything from the electrical system to the roofing to the foundation. Inspectors can also make suggestions on items that need to be repaired now and those that can be deferred until later. Their reports help buyers negotiate knowledgeably with sellers.
The sole purpose of a home appraisal is to determine the value of the property and ensure it’s worth at least what you’re paying for it.
An appraiser will look at the condition of the home, the quality of construction, the size of the home, its layout, and any amenities or special features that may add to its value. They’ll examine things that may detract from its value as well. They’ll look at the features and usability of the lot the home is on.
The key is that they then compare the property to similar homes in the neighborhood that have been recently sold. They’ll take into account the sale prices of those homes, and use that data to determine the current value of the home you want to buy.
If you have questions about home inspections, home appraisals, the loan process, or anything else to do with home financing, reach out to us. You can call 205–986–4220, connect with us on social media, or ping our website. We are happy to help you in any way we can.
— Ben Chenault,
Certified Mortgage Planner
MortgageBanc / Fairway Nmls# 2289
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