transparent-with-logo-sigtransparent-with-logo-sigtransparent-with-logo-sig
    • HOME
    • HOME FINDER
      • SOLANO COUNTY
        • Benicia
        • Dixon
        • Fairfield
        • Green Valley
        • Rio Vista
        • Suisun City
        • Vacaville
        • Vallejo
      • NAPA COUNTY
      • American Canyon
      • Angwin
      • Calistoga
      • Deer Park
      • Napa
      • Oakville
      • Rutherford
      • St. Helena
      • Yountville
    • SELL WITH ADREAN
    • BUY WITH ADREAN
    • MARKETING
    • COMMUNITIES
    • HOMES VALUES
    • ABOUT
    • CONTACT US
    • GET QUALIFIED
    • FRONT PORCH
      The Importance of Home Equity in Building Wealth
      January 21, 2021
      Turn to an Expert for the Best Advice
      February 2, 2021

      What’s the Difference Between an Appraisal and a Home Inspection?

      If you’re planning to buy a home, an appraisal is an important step in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of the home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying a home.

      Home Appraisal

      The National Association of Realtors (NAR) explains:

      “A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”

      When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.

      This is especially critical in today’s sellers’ market where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.

      However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.

      Home Inspection

      Here’s the key difference between an appraisal and an inspection. MSN explains:

      “In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home.”

      The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.

      Bottom Line

      The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate through the entire homebuying process.

      Share

      Related posts

      March 3, 2021

      How Much Leverage Do Today’s House Sellers Have?


      Read more
      February 24, 2021

      Turning a House into a Happy Home


      Read more
      February 17, 2021

      Why Moving May Be Just the Boost You Need


      Read more

      Let’s Connect

      WHO YOU WORK WITH MATTERS
      Adrean Hayashi REALTOR
      CA DRE LIC# 01523018

      Serving Solano and Contra Costa, Counties with full service real estate
      +1 925.384.8888

      My Passion…

      • Professional video and drone services for every home
      • Maximum value guaranteed
      • A website created just for your property
      • Access to over 128,000+ agents in 110 different countnries
      main-home-slider-two
      main-home-slider-three

      main-home-slider-one
      Featured in Napa Valley California
      Homes in Fairfield California

      Homes in Napa California
      Estate Home With Spears Team

      2020 Copyright adreanhayashi.com website by
      ElitePartnerSolutions.com
      866.863.5251