What’s the Difference Between a Home Inspection and an Appraisal?
What’s the Difference Between a Home Inspection and an Appraisal? | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you’re looking to buy a home in Los Angeles or Beverly Hills, California, it’s important to understand the difference between a home inspection and an appraisal. Both are crucial steps in the home buying process, and it’s important to know what each one entails before finalizing your purchase.
A home inspection is an evaluation of the home’s condition and safety. This inspection typically includes an evaluation of the roof, HVAC system, plumbing, electrical system, and more. If any issues are found during the inspection, the buyer can discuss and negotiate any potential issues or repairs with the seller before the transaction is final.
On the other hand, a home appraisal is a professional evaluation of the market value of the home. The lender typically orders the appraisal to confirm the value of the home prior to lending a buyer money for the purchase. An appraiser will observe the property, analyze the data, and report their findings to the lender. The appraisal helps make sure that the bank doesn’t loan the buyer more than what the home is worth. This is especially important in areas like Los Angeles and Beverly Hills, where home prices tend to be higher than other parts of the country.
In today’s sellers’ market, low inventory is driving an increase in bidding wars, which can push home prices upward. However, the lender will only allow the buyer to borrow based on the value of the home, which helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, a trusted real estate professional can help navigate any additional negotiations in the buying process.
In summary, both the home inspection and appraisal are critical steps when buying a home in Los Angeles or Beverly Hills, and it’s important to have expert guidance throughout the entire home buying process. A real estate professional can provide the guidance and expertise needed to ensure a successful and stress-free home purchase.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value