Inspection vs Appraisal


Inspection vs. Appraisal

 

Do I need a home inspection when my bank is already having the house appraised?

 

Yes! The Appraiser is typically working for the bank, and the Home Inspector is always working for you. A house appraisal is an independent evaluation of the current market value of a house or property. In general, the purpose of an appraisal is to set the current value of a house so that a lender may determine how much it can loan to the buyer. The appraiser looks at similar properties in the area and the prices at which they were sold to set an appraised value for the house.

 

TheĀ Home Inspector conducts an overall evaluation of the homes major systems and structural components. The home inspector identifies defects, deficiencies, safety hazardsĀ and items in need of repair or replacement, which can save you thousands of dollars and give you leverage to negotiate with the seller.

 

U.S. Department Of Housing And Urban Development (HUD) requires buyers sign a Consumer Notice advising them to get a home inspection in addition to a house appraisal before purchasing a house with a FHA mortgage. Additionally, HUD now allows homebuyers to include the costs of appraisal and inspection in their FHA mortgage.