Appraisals vs. Inspections - Are They Different?
If you are considering purchasing a home, it is important to know what the process will be like. There are two services that have to be performed around your house before the closing date... a Real Estate Appraisal and a Home Inspection. Arrowhead Title is the best title agency at the Lake of the Ozarks, so we are familiar with the real estate process and we are here to help. Read on to learn about these two services and how they differ from one another.
During the appraisal process, a professional appraiser assesses the value of the property in question. The appraisal is the service that helps determine how much the buyer should pay for the home that has been appraised. At the point of the appraisal, an offer has already been offered and accepted. However, if the home appraises for lower than the agreed upon amount, then the buyer can request that the amount be lowered to the appraisal value.
Home Inspection
This is often the first of these two services performed during the closing process on a home. Inspections are performed by a trained professional in order to determine the condition of the home. These inspectors examine the house in very thorough detail in order to find any issues that may be present. Areas that they focus on include the roof, foundation, crawlspace, plumbing, drainage, electrical, HVAC, patios, decks, appliances, floors, ceilings, walls, code compliance, and more.
It is the inspector's job to find any faults in the home and communicate them to both the buyer and seller. Even though the inspection is provided to both sides in the real estate transaction, it is typically the buyer's responsibility to pay for the inspection to ensure they know what it is they are buying.
Real Estate Appraisal
During the appraisal process, a professional appraiser assesses the value of the property in question. The appraisal is the service that helps determine how much the buyer should pay for the home that has been appraised. At the point of the appraisal, an offer has already been offered and accepted. However, if the home appraises for lower than the agreed upon amount, then the buyer can request that the amount be lowered to the appraisal value.
Appraisers are chosen buy the lender in order to select the most unbiased person possible to do the job. Appraisals are much quicker than inspections - They simply do a walk-around and walk-through to assess the quality of the house and it's features. Appraisals are also the responsibility of the buyer, financially.
Why You Need Them
Inspections and Appraisals may sound like the same thing at first glance, but they have very different purposes and both are necessary to the home-buying process. Paying for an inspection helps you determine whether or not there are any issues that could be non-negotiable in the home buying process. And an appraisal is important to make sure you are paying the correct amount compared to the value of the home.
Your Real Estate Transaction
When you decide to buy a new home and get ready to schedule your closing date, be sure to keep Arrowhead Title in mind! We are the best title agency at the Lake of the Ozarks, and we are here for you and all your closing date, title insurance, and escrow services needs.
Where Accuracy Matters!
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