Appraisals vs. Home Inspections
Clients ask me all of the time, "I don't need to have a home inspection because the bank does one, right?" And that question has led me to write this blog. An appraisal and a home inspection are two very different things, but are both very important in a real esate transaction.
According to the North Carolina Real Estate Commission:
- An appraisal is an estimate or opinion of quantity, quality, or value. As applied to real property, it is an opinion as to a property's value, marketability, usefulness, or suitablility. Also, the process of deriving a conclusion as to value, and the report setting forth such conclusion.
- A home inspection is an evaluation of the visible and accessible systems and components of a home (plumbing system, roof, etc.) and is intended to give the client (usually a homebuyer) a better understanding of their condition. It is also important to know what a home inspection is not! It is not an appraisal of the property's value; nor should you expect it to address the cost of repairs. It does not guarantee that the home complies with local building codes (which are subject to periodic change) or protect you in the event an item inspected fails in the future. [Note: Warranties can be purchased to cover many items.] Nor should it be considered a "technically exhaustive" evaluation, but rather an evaluation of the property on the day it is inspected, taking into consideration normal wear and tear.
In the Jacksonville NC real estate market, with the prevelance of VA loans, it is a common misconception that the VA requires an inspection on a property. In all actuality, the VA requires a VA approved appraiser to appraise the property to ensure that it is not being purchased for more than market value. This appraiser does not check or inspect the property for any systems or components that are not performing their intended function. For this reason, I ALWAYS recommend getting a home inspection!
Please remember that a home is your biggest investment, and that you want to protect it and yourself. It could end up being the best $300 you've ever spent...
Alexis Pierson ~ The Starter Home Specialist ~ Serving the Jacksonville NC area - Licensed in the state of North Carolina, affiliated with EXIT Independence Realty. Your Starter Home Specialist for Jacksonville NC,Richlands NC, Hubert NC, and Onslow County. My knowledge and dedication will help your real estate transaction to go smoothly, so that you can enjoy the experience and look back on it with a smile! To discuss your next home purchase or home sale call me at (910) 467-4322!