When you're in the process of buying or selling a home, undergoing both a home inspection and appraisal is an integral step. Given the substantial financial commitment involved, it's imperative to assess the property thoroughly. While some individuals may erroneously perceive appraisals and inspections as interchangeable, they actually serve distinct purposes.
An appraisal centers on determining the property's value based on various factors, including its location, proximity to desirable amenities like schools, lot size, the condition and dimensions of the home, as well as recent sales prices of comparable properties. The primary objective of an appraiser is to safeguard the lender against acquiring an overpriced property. Consequently, an appraisal is a prerequisite for securing a mortgage. It's worth noting that appraisers do not delve into exhaustive home inspections, although they may take note of apparent signs of neglect, such as cracked walls, chipped paint, broken windows, or damaged flooring.
Conversely, a home inspection entails a far more comprehensive evaluation of your residence. While an appraisal is mandatory for mortgage approval, an inspection is not obligatory, yet it remains highly advisable. A certified home inspector meticulously examines every facet of the property, diligently seeking out any issues that could potentially jeopardize the buyer's investment. Unlike appraisers, whose primary responsibility is to protect the lender's interests, home inspectors primarily serve to safeguard the buyer from making an ill-advised purchase.