So you've probably heard all about costs associated with buying a home, and often in a home purchase, home inspections and appraisals are both brought up. So, what are they and what’s the difference?
First of all a home inspection is often written as condition in your purchase contract and is usually done to protect you as the homebuyer. In most cases you will contact a qualified home inspector will assess the physical condition of the home and all of its major systems to help you determine if everything is in good working order. You typically receive a schedule outlining what repairs are needed and by when. This allows you to decide if you wish to proceed with purchasing the home, or even re-negotiate your purchase price based on the findings of the report.
A home inspection will normally cost you in the neighbourhood of $300-$500 but can save you significant money and stress in the long run! If you are looking for a qualified home inspector I can recommend one to you.
An appraisal on the other hand is an objective assessment of the home’s value to confirm that the property you're purchasing is suitable as security for the mortgage.Homes are nearly always appraised for the purchase value, but lenders and insurers take on their own financial risk, and they want to feel confident in the property before they approve the mortgage.
A standard appraisal is normally $250-$350 and often if you are purchasing a home with less than 20% down it is not required.
So there you have it, if you have any other questions about appraisals, home inspections or any other closing costs make sure to give me a call (604-619-3319) or send a message!