Written by Beth Posey, REALTOR @ Keller Williams Roers Realty
Cell: 701-390-9343
Office: 701-223-2120
What is the difference between an Inspection and an Appraisal?
An Inspection is when you hire someone to do a comprehensive analysis of the home’s major systems and components. This is a great way to gain knowledge of a home. When buying a home with the help of a REALTOR, this report can help you in your decision making process. You may be able to use this report to have items repaired in the home by the Seller. Sometimes, the Seller may not fix the items that you request in the home. At that point, you would ask yourself if you can accept the home as is and proceed OR decide not to pursue the home if the report was too much for you to handle.
An Appraisal is usually required by your lender if you need help with financing your home. The appraisal is an opinion of value. The lender can be ensured that the home is valued according to how much they are financing for you. Occasionally, the appraiser may find a safety or sanitary issue with the home that will need to be repaired before closing.
Inspections are optional, however they are recommended.
Having an inspection done is a great way to gain knowledge about a home if you're a buyer. A seller may consider having an inspection done before listing so that they can take care of any issues. That way the home in the best condition possible when it goes onto the market.
Appraisals are usually mandatory by the lender.
