Real Estate Appraisals And Home Inspections
If you are a buyer or seller, you have to realize that real estate appraisals and home inspections are actually two different things. While a lender authorizes an appraisal, it is the home buyer who needs to get a home inspection. |
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A real estate appraisal is done to determine the market value of a property. This market value lets the lender know whether by giving you the loan, he can cover the risk. In case you default on the loan, the lender can sell your property and recover the amount of the loan. Hence, an appraisal is done.
Appraisals are carried out by qualified and certified appraisers. They will check the condition of the house, both interior and exterior, try to evaluate the neighborhood, and see what the prices of similar homes in the neighborhood are in order to put a market value on the house.
On the other, home inspections are done by qualified and certified inspectors who are hired by buyers when they are considering purchasing a property. The inspector checks the property for general condition, and also checks the state of the construction, electrical fixtures, plumbing, household appliances, modifications, extensions or anything else that could be detrimental or expensive for the buyer. Based on his evaluation, the inspector will prepare a report wherein he will point things that need to be repaired or replaced and things that are in good condition. This report will allow the buyer to make a decision whether to go ahead and purchase the home or not, or whether it is financially feasible for him to buy the house.
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