Appraisals are Not Inspections
Its easy to confuse the role the appraiser with that of the Inspector and when the difference is discovered it is often too late. The bank organizes the appraisal to make sure that there is adequate value in the property to cover the loan. The appraiser does not look at the operation or components of the structure. The appraiser wants to know square footage, number of rooms, size of the lot. Average time spent at the building for an appraisal is relatively quick, brief walk through, taking a few photos, measurements and leaving.
Appraisals are for lenders; Inspections are for buyers.
Your lender does an appraisal for three reasons:
1) Estimate the value of a property
2) Make sure that the building meets minimum property standards
3) Determine that the property is marketable by the bank in case of foreclosure
You need an Inspection as well
The Inspection gives a you detailed information about every facet of the property you are buying.
During your Inspection, your Inspector takes an in-depth, unbiased look at what you are buying and will:
– Report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors.
– Evaluate the physical condition of the structure, all aspects of the construction and its mechanical systems.
– Identify items that will need to be repaired or replaced.
– Give information about the life expectancy of the major systems, equipment, structure and finishes.
Inspection vs Appraisal
You pay for both, the Inspector works for you and for your best interest. The appraiser works for your bank or lender and has no interest in what you want or hope for. The appraiser is there to make sure that the value of the property is not overstated, so that the bank will not loose money if they repossess your home. The appraisal for a loan has nothing to do with real value.
Be an Informed Buyer
An appraisal is not a substitute for an Inspection by a Great Inspector.