What's the difference between an Inspection and an Appraisal?

Embarking on the journey to purchase your first home can introduce you to unfamiliar terms. Understanding the distinction between a home inspection and an appraisal is crucial for any homebuyer.

Home Inspection: A home inspection is vital once you’ve made an offer on a house. It assesses the property’s safety and condition, safeguarding your investment in this significant purchase. Should the inspection raise concerns—be it the roof’s condition or the HVAC system—you can negotiate with the seller on potential repairs before finalizing the sale. Your real estate agent will support you throughout this process, ensuring your interests are well-represented.

Home Appraisal: An appraisal, on the other hand, determines the home’s value, ensuring the price aligns with the market and protecting both the buyer from overpaying and the lender from overfunding. If the appraisal falls short of the sale price, your real estate professional will assist in resolving any discrepancies.

In Summary: Both inspection and appraisal are essential, yet distinct, parts of the homebuying process. You’re not alone in this; a real estate agent can provide expert guidance every step of the way.