What’s the difference between an appraisal and an inspection? An appraisal is the bank’s value of the home, and inspections are far more specific.
We usually recommend three different inspections to our clients. First, a general inspection is when an inspector nitpicks the house and finds everything wrong with it. Second, a sewer scope inspection is when a professional will look through a sewer scope to check whether there are any cracks, breaks, or trees growing through the sewer. The third is a radon inspection; radon is a naturally occurring gas here in Colorado, and high levels of it can be dangerous, so an inspector will ensure the levels are safe. Having these three inspections done in the beginning can save you between $3,000 and $5,000 later.
An appraisal is the bank’s inspection of the property. Instead of assessing windows, faucets, and roofs, they’re looking at comparable sales and your home’s square footage. They’re also searching for any reason that the house may not be livable, such as holes in the walls. The bank wants to know the value of the property in general, not every little thing you may want to repair.
If you have any questions about appraisals, inspections, or real estate in general, call or email us. We would love to help you.