When it comes to selling your home, there are a lot of things that need to happen before handing over the keys to the new owners. The entire process of listing, showing, and using a home value calculator to eventually selling your home can be lengthy and often stressful, from hosting open houses to staging your home for sale.
One crucial step when it comes to the process of selling your home is having the property appraised and inspected. If you have never sold a home before, you may not be familiar with what these are and their importance.
Here is a brief breakdown of home inspections vs. appraisals and the parts they play in the selling of your home.
The home inspection process involves a professional visiting your home and inspecting the property. This is done to ensure the home is in good condition and doesn’t have any major flaws, such as a leaking roof, drainage problems, or major structural issues. Typically, it is the buyer’s responsibility to pay for the services of a home inspector, and it is always recommended that this is taken care of before purchasing a property. In some cases, a homeowner may not be truthful or even try to conceal any issues the property may have, which is why hiring a professional home inspector is a crucial part of the home buying process.
While the home inspection process is designed to protect the buyer from any unsavory living conditions prior to moving in, the appraisal process protects the interests of the lender. Typically, a mortgage lender will hire a third-party appraiser to inspect the property to ensure it is in good condition. During the appraisal process, the appraiser will visit the property and determine the condition of the home, including details like the square footage of the property, a number of rooms in the home, and any damage to the property that could possibly pose a problem. After the inspection, the appraiser will evaluate the report and the buyer and lender will proceed from there.
Similarities and Differences
The process of a home inspection is similar to a real estate appraisal, with just a few slight differences. Both processes are designed to assess the condition of a particular property, and both take place prior to the sale of a home. Both home inspections and appraisals primarily benefit the buyer, as they ensure that the property is in good condition and makes a good investment. The biggest difference between these processes is that a home inspection is geared toward inspecting the condition of the home, whereas a real estate appraisal has to do with the value of the home.
Nonetheless, both processes play important parts in the buying and selling of a home, so whether you’re thinking about putting your home on the market or are looking to purchase a house, you will need to deal with both of these at some point during the process.