Home Inspection Vs. Appraisal: Which One Do You Need?

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Almost 65% of people in the US are homeowners. As such, they likely had to deal with the home inspection vs. appraisal dilemma at some point.

Many people that have never invested in a home don’t know what the difference between these two terms is. The key is that a home appraisal is almost always required, while a home inspection is more of a serious recommendation.

If you’d like to learn about what these terms mean, keep reading as we explain below. 

The Difference Between A Home Inspection Vs. Appraisal 

A home inspection is when each and every part of the home is looked at in-depth to make sure that the home is safe. Instead of looking at value, a home inspector will look at the condition with a microscope to make sure that anyone buying the home knows exactly what they will be getting. 

They can give potential buyers (or sellers that are doing the inspection before sale) a report on everything that they find. 

An appraisal is when your home is judged to determine its value. This is based on a lot of factors, like the local market conditions, the features of the home, and the condition the house itself is in. 

Some common things that an appraiser might look at include:

  • Age of the home
  • Similar properties in the area
  • Condition of the interior
  • Roofing, siding, and foundation
  • Permanent features

When Do You Need A Home Inspection?

credit: thearchitectsdiary.com

A home inspection is almost always done before a home is bought or sold. Some sellers may decide to get an inspection done before they list their home on the market, while others will require potential buyers to foot the bill for a professional inspector to come out to the home. 

Either way, a home inspection is actually optional. To buy or sell a home, you don’t have to have a home inspection (although it is highly recommended).

The main reason for this is that the inspection will give you insight into the “health” of the home and whether or not other professionals, like plumbers or electricians, need to be called for services. 

When Is A Home Appraisal Required? 

credit: onqfinancial.com

Home appraisals are typically a requirement for mortgage applications. Mortgage lenders want to know how much a property is worth before they loan you money, so a home appraisal is the easiest way to get that done.

One way to avoid a home appraisal altogether is to not get a mortgage. If you want to learn more about buying or selling a home with cash, you can find more information here. 

If you’re refinancing a loan, you may not be required to get a home appraisal. However, the decision will end up with the lender in that situation.

Further Watching

Read More:

How Can A Home Inspection Save You From A Huge

How to Protect Your Family to Exposure of Asbestos at Home

Being Smart In Real Estate

When looking at home inspection vs. appraisal options, they are not the same thing. However, both are typically involved whenever a home is bought or sold, so they may be something you’ll come across as you invest in real estate.

Knowing the main differences will help you be more knowledgeable as you continue through the process.

If you liked this article, check out the rest of our blog for even more just like it.