When buying or selling a home, it's important to understand the difference between an appraisal and a home inspection. Both play crucial roles in the real estate process, but they serve different purposes.
An appraisal is an estimate of a property's value conducted by a licensed appraiser. The appraiser evaluates the property's condition, size, features, and comparable sales in the area to determine its market value. Lenders require appraisals to ensure that the property is worth the amount of money being borrowed for the mortgage.
On the other hand, a home inspection is a thorough examination of a property's condition, typically conducted by a certified home inspector. The inspector assesses the home's structural integrity, electrical systems, plumbing, HVAC systems, and other components to identify any issues or potential problems. The inspection report helps buyers make informed decisions about the property and negotiate repairs or price adjustments if needed.
In summary, an appraisal determines the value of a property, while a home inspection evaluates its condition. Both are important steps in the home buying or selling process, helping to protect both buyers and sellers.
