Home Appraisal vs. Home Inspection: What's The Difference?
Home inspection and home appraisal are both terms that apply to the condition of a home, but they have entirely different meanings. If you're purchasing a home from one of the real estate companies in Lakeland, it's critical to know the difference between a home appraisal vs inspection.
A home inspection indicates the current condition of a home at the time of the inspection. It looks at major components such as structural integrity, the condition of the roof and the slab or basement, the heating and air systems, and any other system that can affect the livability of the building. Some conditions, such as a gutter that needs to be replaced, can be remedied relatively easily. Others, such as a slab leak or a sewer leak, can be expensive and time-consuming, so the buyer needs to know this before agreeing to a purchase price. The primary objective of a home inspection is to ensure the safety of the dwelling as well as its condition and any possible future issues.
Knowing the overall condition of the home and its components can help you make the best decision on the purchase price and any conditions that should be met for the sale to be completed. If the owner is disinclined to repair or replace any issues that the home inspection uncovers, the transaction may be canceled, or the buyer may negotiate a lower price on the home. The buyer usually pays for a home inspection unless otherwise agreed upon in the purchase contract.
A home appraisal is an unbiased professional opinion of the value of a home. It provides the buyer and the lending institution with the current market value of a home by using the condition of the home, recent sales of similar homes in the area, the location, and the curb appeal. Other factors, such as size, style, age, and construction, may also be a factor in the appraisal.
Appraisals are usually required so that the lending institution doesn't loan more on the home than its actual value. It also helps keep local home prices under control. If the appraisal comes in at a price that's considerably lower than the asking price, the borrower has the option of canceling the transaction. Usually, the borrower pays for the appraisal fee, which is typically several hundred dollars.
Although your lending institution will probably require an appraisal before the loan on the home, they may not require a home inspection. However, it's in the buyer's best interests to have a home inspection as well as a home appraisal.
If you're interested in purchasing a home in Lakeland, then you need to know the difference between a home appraisal vs inspection so that you can make the best buying decision possible. Your real estate agent is the expert who can help you make the best home purchase for your current and future needs, so call them today.