What is the Difference between and Appraisal and a Home Inspection?
An Appraisal is the process of developing an opinion of value for real property (usually market value). Real estate transactions often require appraisals because they occur infrequently and every property is unique (especially their location, a key factor in valuation). Appraisal reports form the basis for mortgage loans, settling estates and divorces, taxation, and so on. Sometimes an appraisal report is used to set the sale price of a property.
A Home inspection is a limited, non-invasive examination of the condition of a home, often in connection with the sale of that home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections. The inspector prepares and delivers to the client a written report of findings. The client then uses the knowledge gained to make informed decisions about their pending real estate purchase.
Why is it important to have an Appraiser than knows the area?
Appraisers should have an in-depth knowledge of the market area for the property they are appraising. It is important that they understand the differences in neighborhoods or areas within the community and how this affects home values. It is also important to understand current sales and buyer trends. An appraiser that is not familiar with the area may compare your property to one that is not truly comparable causing the value opinion to be higher or lower than what is actually happening in the market.
If you have any other questions about the appraisal process or how we can help you please contact us!