Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png What’s The Difference Between An Appraisal And A Home Inspection? – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 14 Jun 2016 11:30:17 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 Why A Bank Appraisal And A Home Inspection Are NOT The Same [caption id="attachment_9259" align="aligncenter" width="450"]What Are The Differences Between A Bank Appraisal And A Home Inspection What Are The Differences Between A Bank Appraisal And A Home Inspection[/caption] Whether you're thinking about selling your home or buying a home, it's important that you understand the difference between a bank appraisal and a home inspection.  In fact, one of the most common real estate misconceptions is that a bank appraisal and a home inspection are one in the same. There are many reasons why a bank appraisal and a home inspection are different.  Buyers and sellers who believe they are the same or similar end up being surprised when they are informed they are not. Read on to find out what the differences are between a bank appraisal and a home inspection.  In addition you will find out what a bank appraisal is, what a home inspection is, and also some of the inspections that a buyer has the option to perform during a real estate transaction.

What Is A Bank Appraisal?

An appraisal is an unbiased, professional opinion of a homes value that is completed by an appraiser.  Appraisals are performed in real estate transactions when a buyer is taking advantage of financing through a financial institution and also sometimes when a homeowner is attempting to refinance their mortgage. The primary purpose of a bank appraisal is to ensure that the sale price that a buyer and seller agree upon is not more than the current market value of the home.  A bank appraiser ensures the contract price is appropriate given a homes condition, features, and location.  In the event a buyer defaults on their mortgage the bank completes the appraisal to ensure they can recoup the money they lent to the borrower. Whether buying or selling a home, it's important to understand that there are some common bank appraisal issues that can arise.  Being aware of a common appraisal issue such as a home appraising for less than the agreed upon sale price can help alleviate additional frustration, should an issue arise.

What Is A Home Inspection?

[caption id="attachment_9262" align="aligncenter" width="450"]Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside Are Bank Appraisals & Home Inspections The Same - Learn All About Appraisals And Inspections Inside[/caption] The term, "home inspection," is very vague.  When a buyer is purchasing a home they have the right to complete a variety of different types of inspections and there are many reasons to have an inspection when buying a home. The most common inspection that is performed by a buyer is the general inspection of the home by a licensed home inspector, general contractor, or other buyer representative.  A general inspection of a home is a detailed investigation into a homes plumbing, electric, HVAC systems, roof, and other aspects of the home. While a general inspection is the most common, it is not the only inspection contingency that a buyer has the option to include in their offer.  Below are 5 other common real estate inspection contingencies that a buyer could perform when buying a home.
  1. Radon Test - A radon test is another inspection a buyer has the option to perform when buying a home.  Radon is a cancer causing gas that can be present in a home.  If high levels of radon are present in a home, it must be mitigated by installing a mitigation system.
  2. Pest Inspection - Some buyers will elect to have a pest inspection completed on a home.  Pests, such as termites, powder post beetles, boring bees, and carpenter ants can create major problems in a home.
  3. Septic Inspection - If a home has a septic system, another inspection that is fairly common is a septic inspection.  A septic inspection should be completed yearly since a faulty septic system can create big problems in a home.
  4. Chimney Inspection - If a home is equipped with a fireplace, it's common a buyer will include a chimney inspection contingency.  A chimney inspector ensures that the chimney is safe for use.
  5. Foundation/Structural Inspection - Selling a home with foundation issues is very difficult.  Foundation and structural issues will scare away many buyers, therefore it is a common inspection that is completed.
 

What Are The Differences Between An Appraisal And A Home Inspection?

Now that you have a strong understanding about what an appraisal and a home inspection are, it's important to understand the differences.  The differences between an appraisal and a home inspection are not commonly discussed.  Below are some of the major differences between a bank appraisal and a home inspection.

When They Are Completed

One of the biggest differences between an appraisal and a home inspection is when they are actually completed.  When a buyer and seller agree to terms of a real estate contract, a buyer has a specified number of days from acceptance to complete the various inspections they make an offer contingent on.  The amount of days will vary, depending on the number of inspections. Once a buyer is satisfied with the inspection results, a bank appraisal will be ordered and completed.  It doesn't make any sense for a buyer to pay for the appraisal before they are satisfied with the results from their inspections, otherwise they could be spending money for nothing.  There are many reasons why a real estate deal falls through and inspection results is one of the most common.

Amount Of Time To Complete

Another difference between an appraisal and a home inspection is the length of time it takes for each task to be completed.  A home inspection, depending on the inspector, can last anywhere between 2-4 hours to complete depending on the size of the home.  Since a home inspector is rarely the professional responsible for completing all of the inspections, such as a chimney inspection, it's possible that the home inspection phase can take several days to complete because it may not be feasible to coordinate all inspections at once. A bank appraisal on the other hand typically will last between 30-60 minutes, depending on the size of a home.  The bank appraiser will take measurements of the home, takes photos, and makes notes about improvements to the home.  The bank appraiser is also looking for visible safety concerns in the home, such as missing handrails and peeling paint, but will not be as detailed as an inspection of the home.

Negotiations Or Lack There Of

[caption id="attachment_9260" align="aligncenter" width="450"]Bank Appraisal Reports Leave No Room For Negotiations What Are The Differences Between A Bank Appraisal And A Home InspectionBank Appraisal Reports Leave No Room For Negotiations[/caption] A difference between a banks appraisal and a home inspection is the negotiation phase, or lack there of.  After a home inspection is completed, if a buyer is not satisfied with the results, they have the opportunity to request repairs or further negotiations on the price of the home.  One of the most critical skills for a real estate professional to possess, both the buyers and sellers agent, is knowing how to negotiate issues after a home inspection. When a bank appraisal is completed, if there is an issue with the homes value or repairs that are noted in the appraisal report, there is no negotiation phase.  For example, recently while selling a home in Rochester NY, the bank appraiser required that the sellers scrape and paint the garage.  Before the bank would approve the funding for the buyers mortgage the appraiser had to revisit the home to ensure the scraping and painting of the garage was completed.  There is no negotiating if an appraiser under appraises a home or cites repairs, end of story.

Final Thoughts

As you can see from the above information, there is a major difference between an appraisal and a home inspection.  It's critical whether you're buying or selling a home that you understand the differences so that there are no surprises. The major takeaway is that an appraisal is completed to protect the lenders interest and home inspections are completed to ensure the buyer understands the ins and the outs about the home they are looking to purchase.

Other Top Real Estate Resources For Appraisals And Home Inspections

Are you buying a home in Rochester NY or thinking about selling your home?  If so, it's important to understand the difference between an appraisal and a home inspection.  If you're still in the beginning of buying or selling and are in need of a top Rochester NY real estate agent, contact me and I'd love to explain how I make the buying and selling process easy.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors: The above article "What's The Difference Between An Appraisal And A Home Inspection?" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.]]>