Inspection vs Appraisal
Do I need a house inspection when my bank is having the
house appraised?
Yes! A house appraisal is an independent
evaluation of the current market value of a house or property. In general, the
purpose of an appraisal is to set the current value of a house so that a lender
may determine how much it can loan to the buyer. The appraiser looks at similar
properties in the area and the prices at which they were sold to set the value
of the house.
A house inspector conducts a thorough evaluation of the
houses major systems and structural integrity. Whereas the appraiser is
typically working for the bank, the house inspector is working for you.
The house inspector identifies items that need replacement or repair, which can save you thousands of dollars.
U.S. Department Of Housing And Urban Development (HUD)
requires buyers sign a Consumer Notice advising them to get a house inspection
in addition to a house appraisal before purchasing a house with a FHA mortgage. Additionally, HUD now allows homebuyers to include the costs of appraisal and
inspection in their FHA mortgage.
See Consumer Notice
|
