What’s the difference between a Tamaqua Home Inspection and an Appraisal?

What’s the difference between a Tamaqua Home Inspection and an Appraisal?

 

Once you've made an offer on a home here in Tamaqua, you'll go through several steps, two of which are the home inspection and the appraisal.

 

The home inspection, while recommended, is not mandatory. If you're getting a mortgage loan, the appraisal is.

What's the difference between them?

The home inspection and the appraisal serve two different functions.

 

The home inspector checks the house for everything related to the construction and operation of the home. He or she looks at all the systems, such as electrical and plumbing. He turns on the appliances and the heating or air conditioning units to see if they operate correctly. She looks for signs of mold or insect activity. The inspector looks in the attic and the crawl space to check and see if everything is solid. He or she looks at both the roof and the foundation.

 

The inspector makes note of everything from a minor detail such as missing electrical outlet cover to a serious problem like a broken rafter in the roof system.

 

The report you receive from the inspector will tell you about everything that’s working as it should be, and everything that isn’t quite right. As noted, some of these things are minor and some need immediate attention because they’ll lead to trouble in the future.

 

Some inspectors are realistic and some are alarmists. One will tell you that something is not a major issue while another will blow it up and perhaps cause you to withdraw your offer on the home.

 

You should always talk with your agent about the report before making any decisions.

 

Appraisers are looking for the value.

 

While VA and FHA appraisers will note anything that doesn’t meet their specifications, they aren’t going to test the appliances or crawl under the house.

 

They’ll note the condition and take it into consideration along with the age, the square footage, the number of bedrooms and baths, etc. when determining the value. Then they’ll compare what they’ve found with similar homes that have sold recently.

 

Recent sales of comparable homes in that Tamaqua neighborhood (or a comparable neighborhood) are the driving force behind appraisal values.

 

What is recent? Generally it’s considered to be within 6 months – but an appraiser will choose even more recent sales when they are available.  In a fast moving market, they could possibly choose homes that closed within the past week or two.

 

What issues aren’t acceptable for a VA or FHA loan? Anything that presents a health or safety hazard. For instance, broken window panes, tripping hazards, loose hand rails, or the lack of GFI electrical outlets.

 

The appraiser ‘s opinion will determine the maximum value of your mortgage loan.

Hopefully, the appraiser will agree with the price you’ve agreed to pay for your new Tamaqua house. If his or her value falls short, then you can either bow out of the agreement or make a larger down payment.

 

If the appraiser has made a significant mistake, the listing agent may dispute the findings and provide the appraiser with different (better) sales to use in comparison.

 

Do remember that while the bank will depend upon it, an appraisal, like an agent’s market analysis, is nothing more than a considered opinion of value. Three different appraisers may come up with 3 different values – although they shouldn’t be vastly different.

 

In the end, the true value of a home is the price agreement between an informed buyer and a seller who is under no financial duress to sell.