Home Inspection VS An Appraisal - What's The Difference

by Bienek Properties of Sonoma 12/31/2018

There is a lot that goes into the buying and selling of a home Not only are there many steps to take but it can feel like there is a report for everything. It’s easy to forget what they are or why they are necessary.

Three processes that seem similar to home buyers are the home inspection, comparative market analysis, and the appraisal.

Here’s what each them is and how they are different:

First, let’s look at the home inspection.

The home inspection

What it is:

This is probably the one you are most familiar with and have heard the most about. During a home inspection, an inspector is paid to come and test all of the appliances, outlets, plumbing as well as the heating and cooling system.

What this information is for:  

This information is for you the buyer, It is to help make a well-informed decision as to whether the investment you are making is worth the current state of the home. Whether there be repairs that will have to be made or replacements that will need to happen down the line.

The custom market analysis or CMA

What it is:

A sales report your real estate compiles using data they have exclusive access to. This data is compiled into a database used solely by other real estate agents.

What this information is for:

A CMA is used by you and your agent to determine if an asking/selling price is fair. You’ll be able to compare the pricing to other listings and conclude whether it is higher, lower or on par with other offers. This is incredibly useful no matter which end of the spectrum you plan on selling or buying.

An appraisal

What it is: A licensed appraiser comes to visit the home and inspect it solely for value. This is determined by the location, state of and surroundings of the home. Your potential home will be compared to other similar properties in the area to come to a conclusive value.

What this information is for:

The final approval of your mortgage terms by your lender. If the determined value is much lower than your offering price you can be declined a mortgage.

As you can see, each of these processes has varying impact on the final purchase of your home. The information obtained from a home inspection is up to solely your discretion. That gathered from the CMA helps you to determine where the asking price of a home is sitting in comparison to others on the market. And in turn, whether you’ve got a really great deal on your hands or an inflated price. And lastly, perhaps the most important is the appraisal. The information gathered from this process is what your lender uses to determined whether or not to lend you the requested amount.

About the Author
Author

Bienek Properties of Sonoma

Vince and Mary are well-respected by their REALTOR peers in Sonoma's Wine County for their hard work, dedication and integrity. They are passionate about real estate and have a proven track record of exceeding the needs and goals of their clientele. Vince and Mary work as a team. Together, they make up one of the most successful teams in Sonoma County. They specialize in applying their expertise and market knowledge to consistently meet and exceed the needs and goals of their clients. Vince and Mary work with sellers, buyers and investors in both residential and commercial markets.

They have built a reputation for tenacity and protecting the interests and investments of their clients. Vince attended Oral Roberts University in Tulsa, OK, where he studied Business Administration. As a collegiate baseball player, Vince helped lead Oral Roberts University to their only appearance in the College World Series in 1978. After college, Vince played professional baseball for five years in the Chicago White Sox Organization. Vince has a strong background in sales, sales management and the building products industry. As part of his sales management experience, Vince successfully negotiated national contracts with the top 20 builders in the United States. These skill sets have enabled him to be a strong asset for his clients. Mary attended college at the University of Kentucky before completing her BS in Sociology at California State University, San Bernardino.

Mary has been in the business of helping people make the "move" to their next landing place for many years. Be it a home across town or across the country, Mary has paved the way for many buyers and sellers to transition into the next phase of their lives. Vince and Mary are also active volunteers in the Sonoma Valley. They volunteer at Relay for Life, Vintage Festival, Sonoma Film Festival, as well as The Boys and Girls Club of Sonoma Valley. They have a passion for the community they live and work in.