What is the Difference between a “home inspection and a “home valuation or “appraisal?
A home appraisal is the formal process of estimating a property’s value as it relates to a mortgage loan or mortgage insurance. It does not itemize defects or reflect potential problems in the home. Even an FHA home appraisal currently does not attest to the condition of a home. A home appraisal is not a home inspection and the appraiser is not acting as a home inspector when preparing the appraisal report. When performing the appraisal of the property, the appraiser visually observes areas that are readily accessible. The appraiser is observing the condition of the property and its amenities. The appraiser will note any deferred maintenance and adjust accordingly if significant enough to affect the properties marketability and/or value. A home inspection involves an evaluation of the condition of the home’s heating, central air conditioning, plumbing, electrical systems, roof, attic, floors, foundation and structure. The borrower has the right to have a home inspection by a profession
