| An inspection is done by an independent licensed home inspector that is very detailed and covers nearly every aspect visible to the naked eye. It is used to show the overall condition of the property. An appraisal on the other hand is has two purposes. First is to justify the amount of money being borrowed from the bank. The bank doesn't want to loan $200,000 on a $100,000 home so an appraisal must be completed to justify the loan amount being borrowed. Secondly, it's used to make sure the house is in good condition. The standards for an appraisal vary depending on the type of financing of the buyer. Overall, the bank wants to know that house is going to be in good standing for the length of the loan in case the borrower defaults and needs to resell the property. |
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