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Home Appraisals vs. Home Inspections


Steve Jolly

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When you are looking to purchase a home, there are a lot of terms that may get thrown around during the process. Financial terms, building terms, neighborhood terms, all of these have factors that go into making a huge decision. It can get confusing, just with the sheer number of terms you will have to be familiar with and some of them are seemingly related, making it even more difficult to keep track of. While home appraisals certainly have their part in buying a new home, Texas Professional Inspections is here to help you with something a little different.

What is a home appraisal?

A home appraisal is basically an estimate of a home’s monetary value under current market conditions. This worth fluctuates depending on a number of factors. Some of the factors that impact the value of a home are economic, like interest rates and average income of an area, some are geographic, like number of homes on the market and amenities, and some of the factors are specific to the home itself, like square footage and condition of the home. According to Zillow, “an appraisal is typically an important part of the process because the results can affect the borrower’s ability to receive a loan. Most lenders require a home appraisal to make sure a borrower isn’t taking a loan out for more money than the property is worth.” Both you and your lending company want to ensure that the home you are considering is matched correctly with the amount you are asking to purchase it for. This appraisal is done by a neutral, third party, outside of both the seller, the purchaser, and the lending company.

How does it relate to an inspection?

An inspection done by Texas Professional Inspections is slightly different although there will be a few similar components done by your appraiser and your inspector. The appraiser will assess the outside of the property, looking for large issues like the condition of the roof and obvious structural damage. They will also evaluate the interior of the home, again looking for larger issues of concern, like foundation concerns or incomplete repairs and renovations. From there, they will look at similar homes in the neighborhood for comparison, to make their best estimate for what the property is worth. Similarly, an inspection looks for these larger issues, but goes much more in depth with the amount of time and attention to detail spent on the home. Texas Professional Inspections will test every visible component of your home to make sure everything is in good repair and working order, down to the last outlet and light. This way, you can make sure that the investment you are willing to put into the home is good value to you.

What else do I need to know?

Both the appraisal and inspection process will take place before closing and can have a significant impact on the final negotiations taking place. It is more common for the inspection to impact those last negotiations if there is money that needs to be reevaluated for repairs that need to be completed sooner, rather than later. An appraisal will have more of an impact on the final terms to the loan. Appraisers do look at the current market in your area so they can be a valuable tool for what has been bought and sold in your new neighborhood over the last 90 days.

Both a home appraisal and a home inspection are huge steps to getting you into your dream home during the buying process. Texas Professional Inspections has years of experience that make us an ideal part of the team that will make this process easy. We can answer questions you might have leading up to setting an appointment to look deeper into your home, contact us today.

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