How is a Home Inspection Different From an Appraisal?

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In the sometimes confusing world of new home purchases, the homebuyer is sometimes found in the position of having more questions than answers regarding many parts of the process. Depending on who is asked a lot of the questions will have a lot of different answers, muddying the waters even further. One aspect of the pursuit of a new home purchase that is pretty straightforward and easy to explain is the difference between a home appraisal and a home inspection on a Chanhassen or local home.

A home inspection and a home appraisal are vastly different in their ultimate aims. There are similarities, but the content and the end result of each cater to different audiences with different roles in the process. Both must be conducted objectively, impartially and independently. An obvious and ultra-important focus on the details of the home in question are wholly necessary.

Below, you will find the differences between home inspections and home appraisals. Do not hesitate to call AmeriSpec Home Inspection Service if you find yourself in need with your looming new home purchase.

Home Appraisal
A home appraiser, and therefore the home appraisal, works for the lender(s). As a result, the interests of the lender are at the fore of any home appraisal. The would-be home buyer will likely not have a say in who the appraiser is.

The buyer will not be invited to attend the home appraisal. Unless requested by the buyer, and even then sometimes not, a copy of the appraisal may not even be provided. The home appraisal compares the house and property to the other ones found within the immediate local area. Should this home be in better overall shape than those houses, it will probably be appraised at a higher value. The appraiser conducts a good bit of research into the homes in the area to ensure an accurate appraisal. The report generated by the appraisal will likely include some level of information on the other homes utilized as comparison points. The lender reaps the benefits of the home appraisal by helping set a price point and generating revenue in the form of the interest off of that appraisal inspired purchase price. 

Home Inspector
A home inspection makes the potential home buyer aware of potential issues looming within the home they are interested in buying. It serves as a guide by which the home buyer can make an informed decision. A new home purchase likely qualifies as the biggest investment any individual or family makes in their life to that point. A home inspector works on behalf of the buyer and will only have the buyer’s interests in mind. Should the buyer choose to buy the home, the home inspector will still get paid, so the home inspector does not have a financial interest in whether or not the home is sold.

The would-be homebuyer is invited to attend all home inspections. A home inspection covers only the house and the property, not getting into other houses nearby for any sort comparison. It is all about the home in question and the interests of the homebuyer.

Are you interested in hiring a home inspector in Minneapolis? Call AmeriSpec Home Inspection Service at 952-854-5110 or Contact Us.
Location: Chanhassen, MN, USA

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