What’s Difference Between An Appraisal & A Home Inspection?
After an offer has been accepted on a West Knoxville home for sale, it’s not always smooth sailing. Two very important things still have to happen in order for a real estate transaction to close. Those things are an appraisal and a home inspection.
There are many times where these two items are confused. Oftentimes, an appraisal and a home inspection are thought to be one and the same when they are in fact two different things.
In this post, we’ll explain the difference between a West Knoxville appraisal and a home inspection. Knowing the difference ensures that you are well informed throughout your homes search.
What Is A West Knoxville Appraisal?
An appraisal is completed to confirm the value of a West Knoxville home. It is completed by a neutral, third party. An appraisal is done when you are getting a loan on a home. Occasionally, a cash buyer will want an appraisal done to confirm the value of a home, but they’re most often done when a buyer is getting financing.
The main purpose of an appraisal is to confirm a home’s value for a mortgage company. A mortgage company wants to make sure that they’re not lending any more money than they have to. Should a borrower default, a bank wants to make sure that it would be possible to recuperate their original investment. This is why an appraisal is done.
An appraiser ensures confirms that the contract price is supported by the home’s condition, features, and overall condition. An appraiser will also look at other homes that have sold in the area as well as homes that are currently for sale.
What Is A West Knoxville Home Inspection?
A West Knoxville home inspection, in contrast, is completed so that a buyer can get a better understanding of the home that they’re buying. Even when a home looks good from the outside, it can be hiding a whole slew of issues below the surface. This is why a home inspection is done. It gives a buyer a chance to kick the tires, so to say, before they buy a home.
A home inspection is completed once an offer has been accepted. The real estate contract will specify how long a buyer has to complete the home inspection. Home inspections can investigate a variety of issues in a home. Depending on the age of the home that you’re buying, you may do additional inspections than just a simple inspection, including a radon test, pest inspection, or structural inspection.
A home inspection usually takes somewhere between 3 to 4 hours, depending on the size of the home. As a buyer, you are able and encouraged to attend your home inspection. It’s a time for you to learn a bit about the West Knoxville home that you’re buying. An inspector will identify any potential issues at a home. This will allow you to decide if you want to negotiate repairs, buy the home as is, or walk away from the home.
What’s The Big Difference?
A home inspection will give you an understanding of a home’s current condition. If there are issues identified, you’re able to negotiate repairs with the seller. If you’re unable to negotiate with the seller, you can walk away from the transaction and still get your earnest money back. Before you buy a home, a home inspection allows you to know the current condition of a home.
An appraisal confirms a home’s value. It is usually done because it is a lender requirement. But, there are occasionally cash buyers that want an appraisal done. An appraisal confirms that a lender isn’t lending out more money than they have to. An appraiser will look at current market conditions to confirm the price that is being paid for a home is fair. If a home doesn’t appraise, a buyer can try to work it out with the seller or can walk away from the transaction.
It’s important to know the difference between these two items. You wouldn’t want to pass up on a home inspection because you think that an appraisal looks at the condition of a home.
Are you interested in buying a West Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be contacted at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com. Also, be sure to check out our West Knoxville Home Search Page to see what homes are for sale in the area.