So, what’s the difference and why do I need both ? Well, let’s start with the home appraisal. That is something that your financial institution will do. Why ? Because they want to know that the price you paid for the property isn’t higher than the appraised value.
The Bank will normally charge you an appraisal fee. That’s right, usually about $250-$300 they will charge back to you. If you are using a Mortgage Broker or if the loan is large enough they might waive this fee.
Now lets talk about a “Home Inspection”. Do we need it and what does it cost ? Yes to the first part. The Home Inspector is going to come out to the property that you are looking at and do an Inspection. What will they look at ? These would be the top 5 things that you would want to have checked:
(1) Heating and Air Conditioning
(4) Windows and Door
(5) Roofs and Gutters
They will also look at the condition of the flooring, paint. They will test the appliances to make sure they are in working condition. All of the things that you would want checked prior to making such a big purchase. The last thing you want is to take possession and find out you have a major issue.
A Building Inspector will provide you with a report. In a perfect world you meet them at the new place so you can ask questions and they can point out any deficiencies. Hopefully you don’t encounter any but it’s good to know and it allows you to potentially walk away if the issues are too big, or if the seller won’t address them.
The costs will vary from inspector to inspector. The Company that we would recommend charges $425 for a 1,000 sq foot Condo. It increases based on square footage. For an average home under 3,000 square feet the cost wold be $560.
Some Home Inspection companies will charge more based on the services you select. For instance, some will offer a thermal imaging camera at an extra cost. That is used to detect things like mold, heat loss, plumbing leaks and electrical issues. Things that are behind the wall that you can’t see with the naked eye. The company we recommend includes this with every inspection.
I hope this helps with any questions, and if you should have more, please give us call or email us below.