In the oft-muddy world of new home purchases, the would-be homebuyer is frequently found in the position of having unanswered questions regarding certain parts of the whole process. These questions, depending on whom you ask, will often yield a multitude of different answers which can cloud things even further. One aspect of the pursuit of a new home purchase that is pretty straightforward and easy to explain is the difference between a home appraisal and a home inspection on a Chanhassen or local home.
People operate under the errant assumption that a home inspection and a home appraisal are one and the same, or, just get the two mixed up. Similarities do exist, but the content and the end result of each cater to different audiences with different roles in the process.
The comparable aspects of a home inspection and a home appraisal are that both must be conducted objectively, impartially and independently. An obvious and ultra-important focus on the details of the home in question are wholly necessary.
Below, you will find the differences between home inspections and home appraisals. Do not hesitate to call AmeriSpec Home Inspection Service if you find yourself in need with your looming new home purchase.
A home appraiser, and therefore the home appraisal, work on behalf of the lender(s), thus, it is interests of the lender that will be at the fore of the appraisal. The would-be home buyer will likely not have a say in who the appraiser is.
In all likelihood, the buyer will not be invited to attend the home appraisal. Unless requested by the buyer, and even then sometimes not, a copy of the appraisal may not be provided. The home appraisal essentially compares the house and property to the other ones found nearby within the neighborhood. Should this home be in better overall shape than those houses, it will probably be appraised at a higher value. The appraiser conducts a good bit of research into the homes in the area to ensure an accurate appraisal. The report generated by the appraisal will likely include some level of information on the other homes utilized as comparison points. The lender reaps the benefits of the home appraisal by helping set a price point and generating revenue in the form of the interest off of that appraisal inspired purchase price.
A home inspection enlightens the potential home buyer about the home they are interested in buying. It serves as a guide by which the home buyer can make an informed decision. A new home purchase likely qualifies as the biggest investment any individual or family makes in their life to that point. A home inspector works on behalf of the buyer and will only have the buyer’s interests in mind. Should the buyer choose to buy the home, the home inspector will still get paid, so the home inspector does not have a financial interest in whether or not the home is sold.
The would-be homebuyer is invited to attend all home inspections. A home inspection covers only the house and the property, not getting into other homes in the neighborhood for comparison purposes. It is all about the home in question and the interests of the homebuyer.
Are you interested in hiring a home inspector in Chanhassen? Call AmeriSpec Home Inspection Service at 952-854-5110 or Contact Us.