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Today, I tackle an issue that many people, especially those new to the industry, have trouble understanding. When buying or selling a home, two processes that are very different, but often confused, are appraisals and inspections. Let's dive right in.
An appraisal is something that is required in order to get a loan and establishes the value of the home. This way, the bank knows that you're lending on collateral that's actually worth what you're paying for it.
An inspection is generally not required and determines the condition of a home. In some cases, when you get an FHA, USADA, or VA loan, the appraiser will actually do some of the things an inspector would do, but to a lesser extent. They will look for certain conditions that your home must meet in order to qualify for those types of loans.
We recommend that every one of our clients gets a home inspection and pest inspection. Inspections are much more in-depth than even the most thorough appraisals. Home inspections are typically done during the due diligence period, and what the home inspector finds will be sent to both your agent and you in the form of the report. This report is crucial, as it plays a large role in the negotiating process.
If you have any questions about this topic, or if you need real estate assistance of any kind, give us a call or shoot us an email. We would love to hear from you!