Can an Appraisal Serve as a Home Inspection? 

If you’re in the process of buying or selling a home, you may have questions about the purchase agreement and the common steps that are involved in the process, including getting an appraisal and a home inspection. While it’s easy to lump things together, it’s important to know that appraisals and home inspections are not the same, and both are an important part of buying a home. 

What Is a Home Appraisal?

A home appraisal is an independent, unbiased assessment of the value of a home. Home appraisals are most commonly ordered during the process of purchasing a home, as mortgage lenders require home appraisals before issuing loans. The purpose of the home appraisal is to determine the value of the home in comparison to the purchase price listed in the purchase agreement; the bank wants to make sure that it’s not giving out more money than the home is worth. 

What Is a Home Inspection?

Home inspections may be required by lenders, but are often waived as long as the home appraisal is conducted. A home inspection is an independent assessment of defects of the home that is performed by a professional. It will consider things like foundation, plumbing, electrical, the working status of appliances, HVAC system, etc. 

Should I Waive My Right to Home Inspection if I Get an Appraisal?

Even if you get an appraisal, it’s still a good idea to get a home inspection. While the appraiser will certainly consider obvious defects in their appraisal report, they are not trained to recognize things like water or foundation defects. Waiving the right to a home inspection is rarely recommended, as homebuyers who do this may encounter costly problems after moving into the home. To protect your best interests and your financial position, it is always a good idea to get both a home appraisal and a home inspection. 

Call Allstate Appraisal Today to Learn More About the Home Appraisal Process

The home appraisal process is usually required as part of a real estate purchase transaction, but getting a home appraisal can be valuable in other situations as well. If you are in need of a home appraisal, call Allstate Appraisal today. Our appraisers have years of experience and our appraisal process is designed to generate accurate results. We also have a rebuttal process in place and will be prepared to defend our appraisal findings if challenged. To learn more, call us directly today or use the contact form on our website to send us a message at your convenience.