What is the difference between a home inspector and an appraiser

Usually, the buyer selects the home inspector they want to work with and the lender selects the appraiser. The buyer pays for both the inspector and the appraiser, unless otherwise negotiated. The appraisal also happens during the escrow period, usually a week or two before closing.

Elements of an Offer: Money, Timing and Waiting. This browser is no longer supported. Please switch to a supported browser or download one of our Mobile Apps. See Mobile Apps. Menu subnav-close Search subnav-close. Home Buyers Guide. Making the Deal. In this article: What is the difference between an appraisal and an inspection? What happens during an appraisal? What if the appraisal comes in low? What to expect from a home inspection How are home inspections and appraisals similar?

Inspection vs. Appraisal for Home Buyers. Their appraisal inspection report will include:. On the other hand, an inspector would turn the heating and air conditioning on and do a series of checks to be sure there are no problems. Unlike home inspectors, all 50 states require an appraiser to be certified. Similarly, a VA loan requires the buyer to get a VA appraisal to make sure the home is worth the agreed-upon price in the sales contract.

You never know what damages might be lurking that even the sellers might not be aware of. For instance, if you know the roof needs to be replaced, you can ask the seller either to come down on price or replace the roof on their own dime. A property appraisal can also determine the price of your loan. A mortgage lender will consider the loan-to-value LTV ratio of the property, and one with a higher LTV ratio will be considered a high-risk loan.

Knowing the scope of your own expertise and what other professionals can do will be helpful to your customers and keep you out of trouble.

And there you have it! Simply put, a home inspector combs the property for any potential issues, while an appraiser reviews the property to determine its fair market value.

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