Home Inspection vs Home Appraisal

Home inspection and home appraisal are two distinct processes that are often required during the home buying or selling process. Here's how they differ:

1. Home Inspection: A home inspection is a thorough examination of the home's physical condition. It is typically conducted by a professional home inspector and involves examining the home's structural components, systems, and appliances. The inspection report identifies any defects, safety issues, or needed repairs, and helps the buyer make an informed decision about the condition of the home. The home inspection is optional but highly recommended for buyers, as it can reveal any potential problems that may not be visible during a regular walkthrough.

2. Home Appraisal: A home appraisal is an assessment of the home's market value. It is typically conducted by a licensed appraiser and involves examining the home's size, features, location, and recent sales of similar properties in the area. The appraisal report provides an estimated value of the home, which is used by the lender to determine how much money they are willing to lend to the buyer. A home appraisal is required by the lender before approving a mortgage loan.

While both a home inspection and a home appraisal involve an assessment of the property, their goals and focus are different. A home inspection is intended to identify any physical defects or safety issues, while a home appraisal is intended to determine the property's market value.

There are some loans that include inspection items, including the VA loan, which requires certain safety and habitability standards to be met, and the FHA loan, which requires a more extensive inspection for the property to meet their minimum property requirements. including FHA, VA and Rural Development. The inspection items included in these appraisals are primarily to assure the health and safety of the buyer, things like tripping hazards, missing hand rails on staircases, and broken or cracked windows. These types of appraisals should not be used in place of a home inspection performed by a professional inspector.

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