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Everything You Need to Know About Home Appraisals and Inspections

Home inspections are thorough examinations of residential properties. The job of a house inspection company in San Diego is to provide their client with an extensive home inspection report that lists any issues the property may have. They are typically hired directly by the seller or buyer.

Home appraisals serve a different purpose. Real estate appraisers are usually hired by the lender for the purpose of determining the true market value of a property. Since the lender can’t lend out more money than how much a home is worth, home appraisals are instrumental in the home purchasing and selling process. 

Although hiring a home inspector is optional, property sellers and buyers are highly advised to do so. This is because the findings provided by home appraisers and inspectors complement each other and as such play a pivotal role in the whole process. Read on to learn why.

Does home inspection affect appraisal?

It depends. The reason why you want to have a property inspected long before any appraiser sees it is because you need to determine whether you even want to purchase the property (if you’re a buyer) or whether it needs some repairs before it can be sold (if you’re a seller).

Let’s say you’re thinking of buying a home near Balboa Park. While it might look great to you, the reality is that this particular home may have some underlying issues such as faulty plumbing or HVAC systems that may cost a lot (or even be impossible) to fix.

You want to find out about these issues as early as possible, and the only way to do so is by having a home inspection technician examine the place. This way, you can avoid filing for loans and paying for appraisals before you’re absolutely sure that the house in question is worth buying.

Does an appraiser look at the inspection report?

Home appraisers are trained to perform their appraisals and produce their final appraisal reports without the help of 3rd parties such as home inspectors. That being said, if you’ve had the property inspected prior to the appraisal, be sure to mention it to your appraiser. 

While an appraiser will never ask for a home inspection report, they may be interested in taking a look at it if you have one. This is especially the case if your home inspector has found problems with the property that are severe enough to impact its market value. 

How much does a home appraisal cost?

Unfortunately, a one-size-fits-all answer to this question doesn’t exist. Numerous factors can affect the price of a home appraisal. 

These factors include:

  • The size of the home. Bigger homes take more time to examine and therefore cost more. 
  • The level of detail involved in the appraisal. The more complex an appraisal is, the more expensive it’s going to be.
  • Location. Homes located in large cities or places with high labor costs are generally priced higher. 
  • Lack of comparable properties in the area makes an appraiser’s job much more difficult. As a result, the price is adjusted accordingly.
  • Home has unique characteristics that make it extremely difficult to find similar properties that were sold recently in the same general area. 
  • Extensive damages and repairs can further complicate the appraisal process. 

Where can I hire a first-rate house inspection company in San Diego?Does an appraiser look at the inspection report

It’s impossible to overstate the importance of thoroughly examining a residential property you’re thinking of selling or purchasing. Here at Inspectors Company, we would like to help you make a sound decision by providing you with a full report on any problems this property may have.

Reach out to us today and take full advantage of our InterNACHI-certified inspectors and our state-of-the-art home inspection equipment and software. 

How Are Home Inspections and Appraisals Different?

When you make an investment, you naturally want to minimize risks and maximize rewards. Since buying a home is one of the most significant investments you’ll make in your life, properly examining the property beforehand to make sure it’s worth the asking price should be a priority. 

This is where home inspections and appraisals come in. These are two different types of home appraisals that are both designed to benefit you regardless of whether you’re selling or buying a house or an apartment. 

In this article, we will explain what a home appraisal is, when it takes place in the buying process, and how it’s different from an inspection performed by a registered home inspection company in San Diego. Read on to learn more. 

How are home appraisals and inspections different?

A home inspection is a visual examination of a residential property that aims to assess its condition. By presenting you with an exhaustive list that includes everything from cosmetic issues (eg., stains on the walls) to severe problems (eg., faulty electrical systems or plumbing), a home inspection enables you to make an informed buying or selling decision.

On the other hand, a home appraisal is used to determine the real market value of a home. The appraiser will factor in not only the condition of the home, but also its location and the value of similar homes that were recently sold in the same area. 

A home appraisal is required for almost all mortgage loans. Since the lender usually can’t lend more than 97% of the appraised value of the home, the final appraisal report can have a major effect on your ability to purchase a given property. 

Home appraisers typically look for the following:

  • Improvements or upgrades
  • Safety and health hazards
  • Noticeable defects
  • The condition of the property
  • Any conditions determined by the lender
  • Structural integrity

Which comes first home inspection or appraisal?

Home inspections and appraisals aren’t competing entities. While there is some overlap between these two types of property assessment, neither of them can serve as a substitute for the other. For this reason, it’s a good idea to use both when purchasing or selling a home.

The home inspection usually comes first. This is because you want to know if the property you’re thinking of buying or selling has serious problems before you take out any loans or otherwise proceed with the deal.

How long after inspection is the appraisal?

There are no hard rules on when a home inspection should take place relative to the appraisal. Unlike home appraisers, who are usually hired by the lender, home inspectors are privately hired by the buyer or seller. 

As such, exactly when your home inspection takes place will depend on your agreement with the home inspection company. As noted earlier, you generally want to get the home inspection done before you file for a loan to ensure that the property doesn’t have any severe issues that may have a significant impact on its value. 

Where can I find a reliable home inspecWhich comes first home inspection or appraisaltion company in San Diego?

It doesn’t matter if you’re buying or selling a small condo in the suburbs or a luxury villa in the Sunset Cliffs: you want to know everything there is to know about the property in question long before any money changes hands. 

Inspectors Company is here to help you with that. As the leading provider of home inspection services in San Diego, we boast the experience and the specialized equipment necessary to conduct world-class home inspections. Give us a call today.