subject: Real Estate Appraisers Versus Home Inspectors [print this page] Although many people confuse the two fields, there is a substantial difference between real estate appraisers and home inspectors. Both fields deal with real estate, but at different times and for different purposes. Whether deciding to sell your home or just appraising it for insurance purposes, it is important to know the difference between the two.
Home Inspectors
A home inspection is usually performed right before the closing on a house. Sometimes the buyer or mortgage company will require it before closing, since it ensures the new owner (and the lending company) knows exactly what he or she is getting into. After the inspection is finished, the buyer may ask (or demand) that some repairs be completed before approving the purchase.
Generally, home owners should have a home inspection performed every three to five years. This helps the owner keep the house up to date and also keeps pace with marketing trends. During a home inspection, the home inspector will thoroughly check the plumbing and wiring in the home, as well as the furnace or central heating. They also check the roof and insulation, windows and structural feature, among many other points. The advantage of a home inspection is that they offer detailed recommendations for improving the home.
Real Estate Appraisers
When real estate appraisers inspect the home, they can provide a far more current market view of the home. While an inspection concentrates on the home, an appraisal concentrates on the home compared to the selling price. An appraisal is often required by the buyer and the mortgage company, to ensure the loan amount is correct. If a home is worth less than a loan, then that home is considered upside down. For that reason, home appraisals are one of the most important methods of ensuring the home value.
Real estate appraisers will look through the home like an inspector, but their work continues after they leave. They have to look at similar homes in the area and see how the same features and improvements affected the value of those homes, so they can price it accordingly.
What about an Assessment
Sometimes people also confuse these with an assessment. An assessment is independent of inspections or appraisals since an assessment deals with property taxes homeowner guidelines. An assessor looks at a home and decides how much to tax it, a consideration that has little to do with inspections or appraisals, since assessors follow their own guidelines.
