When buying a home, there is a great deal of real estate jargon to understand and one of the most confusing is the difference between a home inspection and an appraisal.
A home inspection is a visual inspection of the components and the structure of a home. It is most often conducted once the seller has accepted the buyers offer and the sale is generally conditional upon the results. The buyer pays for the inspection and spends 2-3 hours in the home with the home inspector and the buyers agent. I recommend a home inspection in all purchases no matter the age, type of ownership or apparent condition of the home.
So what is an appraisal? The best definition I could find comes from businessdictionary.com. An appraisal is an impartial analysis and evaluation conducted according to established criteria to determine the acceptability, merit or worth of an item - in this case real estate. The appraisal is part of arranging mortgage financing and should be conducted before the sold sign goes up. It may be done electronically or the appraiser may visit the home as part of the process. The buyer generally pays for it and it is usually in the range of $300. I'm not a fan of electronic appraisal but that's a topic for another day!
As a potential buyer of Kitchener Waterloo real estate, you may have other questions. You may be relocating, a first time buyer or you may not have bought in 40 years. Feel free to call, text or email for answers. Your questions may be the basis for my next blog post!
Century 21 Home Realty Inc. Brokerage
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