INSPECTION VS APPRAISAL
What is the difference?
What is the difference between Home Inspection and a Home Appraisal? Why should you conduct a home inspection purchasing a home? The purpose of a home inspection is to inform the buyer of the homes current condition. The buyer chooses and pays for the inspector they wish to conduct the inspection. The inspection should be completed within the inspection contingency period of the contract. If there are items they may cause the buyer to not move forward with the contract during the contingency period, the buyer will have the right to cancel or request repairs or a credit towards the items depending on the type of contract.
An appraisal is a professional unbiased opinion of a homes value. If a mortgage is being obtained during a purchase-and-sale contract, an appraisal is almost always used to determine if the home value supports the contracted price. The location, function, condition and upgrades to the home, are all taken in consideration to determine the market value by the appraiser. The purpose of the appraisal is to assure the bank that they are not lending the buyer more money than what the home is worth. The property serves as collateral for the mortgage. The appraisal protects the bank against lending more than what it is worth to recover funds in worst case scenario.
If you have questions about this post, we would be happy to answer. If you are wanting more information about buying or selling a home, will be happy to schedule a time to chat with you about the process and discuss your current market with you. Contact Lisa Morgan or Jennifer Piper at 407-930-4643. Thank you for visiting our blog!