Ap­praisal vs In­spec­tion

Stanstead Journal - - NEWS BRIEFS -

A home is one of life’s most im­por­tant pur­chases. Be­fore com­mit­ting to a pur­chase it makes sense to learn as much as pos­si­ble about any prop­erty you wish to ac­quire. Un­der­stand­ing the im­por­tant dif­fer­ences be­tween an ap­praisal and a home in­spec­tion will help you to ob­tain de­tailed in­for­ma­tion about the home’s value and con­di­tion. An ap­praisal al­lows the lend­ing in­sti­tu­tion to de­ter­mine if the prop­erty be­ing pur­chased is suit­able as se­cu­rity for a mort­gage. For con­ven­tional mort­gages, a lender will in most cases re­quire that a pro­fes­sional third party as­sess the prop­erty to as­cer­tain its cur­rent mar­ket value. A home in­spec­tion is NOT used to de­ter­mine prop­erty value, but will pro­vide an as­sess­ment of the phys­i­cal con­di­tion of a prop­erty. A well-trained home in­spec­tor will per­form a com­pre­hen­sive vis­ual in­spec­tion to de­ter­mine the con­di­tion of the build­ing and all of its ma­jor sys­tems (roof, struc­tural, heat­ing, plumb­ing and elec­tri­cal sys­tems, etc). While an ap­praisal is in­tended to pro­vide the lender with suf­fi­cient in­for­ma­tion to de­cide on mort­gage fi­nanc­ing, a home in­spec­tion will hope­fully re­veal to a po­ten­tial home­buyer whether the build­ing and its sys­tems are in sound work­ing or­der. If there are out­stand­ing is­sues, a good in­spec­tor will pro­vide the po­ten­tial pur­chaser with a sched­ule out­lin­ing the es­ti­mated costs and when these re­pairs will need to be com­pleted.

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