Appraisal vs. Inspection: Why You Should Know the Difference
When beginning the process of buying or selling a home in Encinitas, you should be aware of two integral parts of the process: home inspections and home appraisals. Before selling or purchasing a home in Encinitas, the home needs to be evaluated by a home inspector and a home appraiser.
In general, a home inspection provides details about the condition of the home, and a home appraisal determines a property value for the lender.
What is a Home Inspection?
The main purpose of a home inspection is to inform potential buyers about the condition of the home in Encinitas. Home inspectors should relay any pertinent information about the structure and main components of the home to potential buyers. That way, buyers have an idea of any potential problems that might come with purchasing the home.
Typical home inspections of houses in Encinitas include examinations of:
- Electrical and plumbing systems
- Roof and wall infrastructure
- Foundation integrity
- Garage door functionality
- Asbestos, mold, lead, radon presence
- Insects and pests
Home inspections provide valuable information for both buyers and sellers, and each side should be aware of the information presented by the home inspector.
What is a Home Appraisal?
A home appraisal is performed by an appraiser licensed by the state, who does not have any stake in the selling or purchase of the home. Home appraisals provide unbiased, objective information about the value of a property or house in Encinitas.
In California, federal law requires real estate appraisers to take several courses, pass an exam, and log extensive hours with supervised experience. Home appraisers determine the value by weighing:
- Size of lot
- Size and condition of home
- Recent sales prices of similar homes in the area
- Their general knowledge and specific research
After they have weighed this and other information, an appraiser will determine a property value for the home, and report this to mortgage companies and banks. Lenders will use this information to provide homeowners a loan based on the appraisal value of the property.
As your number 1 real estate agent in Encinitas, I know many trained and qualified home inspectors and home appraisers. Enlist Linda Moore as your real estate agent, and I will help buyers and sellers receive proper home inspections and appraisals in Encinitas.