The Difference Between an Appraisal and an Inspection for Las Vegas Homes

The National Association of Realtors (NAR)
reported that home sales increased by 6.8% in March 2010 after three
consecutive months of decline. First-time home buyers accounted for 44% of
existing home purchases. The American Society of Home Inspectors reminds Las Vegas homes
owners and buyers that
both appraisal and inspection are vital, neither should serve as a replacement
for the other.

An appraisal evaluates the market value of
a home. Normally, a bank requires an appraisal when approving a loan for either
the purchase of a home or the refinancing of an existing loan. Most homeowners
mistake this as home inspection. An appraisal confirms the market value of the
home to ensure that the lender is not over-insuring the property. A home
inspection on the other hand is meant to provide a thorough assessment of the
general condition and safety of the home.

The Federal Housing Administration (FHA)
tells us that an appraisal is done to estimate the value of a property, to make
sure that the home meets FHA minimum property standards and is saleable. A home
inspection, however, is where a qualified inspector takes a systematic
inspection of the house, from the roof to the foundation. A home appraisal
usually takes less time than a home inspection.

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An inspector is likely to examine areas of
your house such as the heating system, central air conditioning, interior
plumbing, electrical systems, roof and visible insulation, walls, ceilings,
floors windows and doors, and also the foundation and structural components of
your home.

 The
time when you buy Las Vegas homes
is
not only the time to consider scheduling a home inspection. It should be done
every three to five years to identify problems before they cost some money to
repair. It can also help homeowners identify potential issues as part of a
major renovation project.