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

Home Inspection versus Appraisal

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.

Mobile Eastern Shore Real Estate For Sale: Third Street

Mobile Eastern Shore Real Estate For Sale:
23996 Third Street, Daphne AL 36526
MLS Number: 144425

Bedrooms:  4
Baths:  3.5

Great opportunity in the much sought after community of Montrose in Daphne AL. Historic oak trees on large lot. House features open floor plan with formal dining room, office, large master suite and a bonus room. Quiet street.

Learn more about Mobile Eastern Shore real estate, please contact us at 251-990-0569 or visit JudySells.com

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Mobile Bay Real Estate And Homes For Sale: 450 Village Drive

Mobile Bay Real Estate And Homes For Sale:

450 Village Drive, Daphne AL 36526
MLS# 131381


Learn about Mobile Bay real estate at JudySells.com or give us a call, 251-990-0569.

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Mobile Bay & Baldwin County Real Estate For Sale: Haleys Lane

Mobile Bay Real Estate For Sale:

Haleys Lane, Daphne AL 36526
MLS# 133955

Best value on the Bay! 158 feet of bay frontage with wide sandy beach in Daphne. Easy commute to Mobile. Beautiful views. Nice elevation. Covered patio with deck plus terrace. Inground pool. Easy access to bay. Oversized rooms. Den with wood burning fireplace.

For more information on Haleys Lane or other Baldwin County AL real estate, visit JudySells.com or give us a call, 251-990-0569.

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Baldwin County AL Real Estate For Sale

Baldwin County AL Real Estate For Sale in Daphne

baldwin county real estate437 VILLAGE DRIVE – MONTROSE VILLAGE IN DAPHNE
BAYFRONT ELEGANCE IN 6, 132 SQ FT 4 BR/5.5 BA HOME IN PRISTINE MONTROSE VILLAGE WITH INCREDIBLE BAYFRONT VIEWS AND MAGNIFICENT YARD & SITTING AREAS. Designer was Fritz vonOstoff, renowned New Orleans landscape artist. Built by Bill Purvis in 1991. Over 103+ front feet on the Bay. Sought-after area. Incredible floor plan. Unbelievable views.

Enter the custom solid mahogany door to this incredible mansion and find yourself inside a huge formal marble foyer, with incredible Bay views and perfect for greeting guests. French doors lead to the oversized walnut-paneled Study with custom-built mantle. Entertain your guests in the formal elegance of the large Dining Room and Living Room or in the oversized, chic Library. Or, you may prefer the casual grandeur of the gourmet Chef’s Kitchen, with stylish custom Siematic baked-on lacquer cabinets and Mexican granite countertops to match.

This Kitchen has all the amenities, including high-end stainless steel appliances, and is open to the equally large and airy Breakfast Room. The incredible Master Suite will be your private retreat and your guests will love the elegant Guest Suite with marble floors and built-in cabinets. Two other large bedrooms complete the upstairs, along with a stylish Upstairs Sitting Room.

Outside, you have an oversized 40 x 18 Gunite pool with shallow ends at both ends and deep center, as well as heated spa jets. The pool area and bath house include magnificent sitting areas with a huge flagstone patio and decorative lion’s heads around the pool itself. omplete pool bath with shower and granite counters. Gas grill for easy outdoor entertaining. You and your guests will enjoy incredible views of Mobile Bay in true style.

Custom-designed courtyard was designed for beauty and privacy with many trees, including four Japanese Maples, and custom-made statue. Unbelievable oversized storage room with built-in cabinets / sink. Double garage with attic storage and complete 12 x 20 attached workshop, with window heat pump unit, sink with 6 gallon water heater and both 220 / 110 electrical wiring.

For more information on 437 Village Drive or other Baldwin County AL real estate, visit JudySells.com or give us a call, 251-990-0569

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