The home buying process is complex and involves many stages, such as home inspections and appraisals. These steps may sound similar, but they’re quite different, and both are necessary if you plan to buy a home. This overview will help you understand how they differ and why each matters. 

What Are Appraisals?

An appraisal is an evaluation of the home for the purpose of determining its value in the market. If you’re financing your home purchase, your lender will likely require an appraisal. There are restrictions in place to ensure the appraiser isn’t influenced by anyone on the lending institution’s staff. The buyer will typically foot the bill, but can sometimes negotiate to have the seller cover the cost instead. 

During this step, the appraiser visits the home to evaluate the condition of its major components, such as the plumbing and electrical systems. The expert will also assess the general condition of the home. This evaluation also includes verifying the square footage and other features.

The appraiser then uses this information to compare the home to others with similar amenities in equivalent markets to estimate its value. Once the appraiser generates a report, they distribute copies to the lending institution, the seller, and the buyer.

What Are Home Inspections? 

A house inspection is technically not required, but homeowners are strongly advised to have one performed.

The job of the home inspector is to evaluate the condition of the home and notify the potential buyer of any major problems they will face if they move forward with the purchase.

The inspector will look at the overall condition of the home and take a closer look at the roof, foundation, HVAC system, and other major aspects of the property. They don’t look at comparables. Since their goal is to give the buyer an assessment that will help them make an informed decision, it’s usually up to the home buyer to pay for the inspection.

What Are the Major Differences?

Since an appraisal is required, the lender will choose the appraiser. The appraiser can refuse to offer financing for a home that has valuation issues. The appraiser will also typically conduct the home tour alone. 

Conversely, the buyer has the freedom to choose any inspector they like, and the results will not impact the buyer’s ability to obtain a loan. An inspector will invite the buyer to tour the home with them and will share their insights throughout the inspection. 

Home inspections often reveal issues that allow buyers to negotiate for an advantageous sale price. They also protect the buyer from making a bad investment. The inspection team at Twin City Home Inspections Inc. has the experience and training to identify problem areas in any home. They can evaluate homes in the Texarkana, TX, market, allowing you to make a more informed decision. To schedule an inspection, visit their website or call (903) 276-9566.