Inspection vs Appraisal
In one sentence: An appraisal is intended to protect you and your lender's overall investment. A home inspection is designed to protect your health, safety and your pocket book.
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. The overall impression of the property's condition is one of the components of the appraisal, but the actual condition of the property's systems is not a consideration. Appraisals are a comparative data study, not a property condition evaluation. The appraiser must consider location, environmental and economic factors in the appraisal. Frankly, appraising is an important job to protect both your and the bank's investment, but far from the hours a properly equipped inspector will spend in your new home.....working to save you money and protect your health
What is the difference between an apraisal and a home inspection ?
FHA and VA appraisers were previously required to complete a VC (a "condition" sheet) when performing appraisals. This was a 40 question form of home conditions. It was far short of a home inspection, but gave the impression that the home "was checked." The GAO (Government Accounting Office) studies of the procedure revealed that the false sense of security this cursory inspection gave was detrimental to the buyers and has now suspended the practice. An appriser's average of 15 minutes time of visual inspection in the home can not replace a home inspection
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.