Both home inspections and home appraisals are part of the real estate transaction that take place once the property is under contract and each serves a specific purpose for the buyer.
A home inspection is completed by an inspector who assesses the physical condition of the home and its systems. This can include items such as the roof, foundation and crawl space, electrical wiring, floors, windows, and similar aspects. The inspector then creates a report from their findings detailing the health of the house and systems, and calls out potential issues so the buyer can better understand the condition of what they are purchasing. This is typically paid for by the buyer, although in a few circumstances the seller may have conducted a pre-inspection prior to listing the home. Home inspection in La Plata County typically cost $500 to $800 based on the square footage of the home and additional tests such as radon, mold, etc. Home inspections are a critical component of a real estate purchase, allowing the buyer to move forward, or not, with awareness of any important concerns.
Conducted by a licensed home appraiser, this assessment looks at some similar items as the inspection, but specifically pertains to the monetary value of the home. Appraisers consider many factors, including size of both the lot and the square footage of the home, age, location, and condition to determine the fair market value. The appraiser visits the property and conducts a comparative market analysis to complete the valuation. Appraisals are also paid by the buyer. In a cash purchase, an appraisal is not required, but highly recommended to help ensure a wise investment. If there is a mortgage lender involved, they will almost always require an appraisal in order to confirm that the home is worth at least the amount being financed since the property is put up as collateral for the loan.
Having a knowledgeable and trusted real estate broker to help navigate these processes and talk through the results with you is invaluable to creating a smooth and successful closing. Please let us know if you have further questions about home inspections and appraisals, local Durango home inspection and appraisal companies, or more about buying real estate.