A HOME APPRAISAL IS NOT A HOME INSPECTION

It has been my experience that many home buyers believe that a home appraisal and a home inspection are the same thing, but this is not the case. Not only are these two processes different but they are intended for different purposes.

HOME APPRAISAL

A home appraisal is a survey of a home, for a fee, by a professional,  for their opinion of the property market value. In most cases, an appraisal is done for a lender when a buyer is being approved for a loan, to ensure that the value of the loan does not exceed 80% of the appraised value of the home.  The appraisal is usually done by the appraiser comparing the different factors of your home with the prices of comparable homes which have been sold in neighboring area within the last six months.  Using this information, calculations are then made, and based on their professional opinion, the appraiser will arrive at an assessed market value of the home you are interested in buying.  The homes used for this comparison are identified in the Appraisal Report. 

 Appraisers do not inspect all of the structures or systems and components of the home to ensure a safe and efficient operation, rather they only look for are major concerns; for example roof, appliances, etc.

HOME INSPECTION

A home inspection is a non-invasive, visual examination of a residential dwelling, performed for a fee, by a licensed residential home inspector, who performs an inspection of all the components and systems in your home to ensure that they are in proper working order and have been properly installed. The structure is also inspected to ensure it is built correctly and has no defects.

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This includes walls, doors, window, electrical outlets, all plumbing fixtures, the roof and everything in between.  A home inspection will not reveal every concern that exists, or ever could exist; only those material defects observed on the day of the inspection.  On an average size home a complete professional home inspection should take at least 3 to 4 hours.  The inspection report describes and identifies in written format the inspected. systems, structures and components of the dwelling and identifies material defects observed.

Even though a home appraisal and the home inspection are completely different, both of these steps should be done before you purchase any home.  Remember, an appraisal is required by the lender. The home inspection should be required by you.