Appraisals vs. Inspections: Two Different Animals
Categories: Ask Andy, Chattanooga Real Estate News, For Home Buyers
By Andy Hodes, Realtor
Many times Buyers ask about the importance of a home inspection if they are getting an FHA or VA appraisal. When the FHA or the VA is involved, the appraisal, in addition to establishing value, looks for certain standards in the home so that its loan can be insured (FHA) or guaranteed (VA) by the federal government. These standards include several, but not all, of the same items covered by the home inspection. Last year the FHA loosened their standards and we now rarely see any FHA concerns while the VA’s standards remains vigilant.
In either case it is essential to obtain a complete home inspection by a licensed home inspector. While the FHA and VA appraisers are looking for certain things during the 15 to 20 minutes they spend in a home, a good home inspector will spend three to four hours (and sometimes even more) completing a thorough inspection of all the various home systems including the roof, attic, electrical, plumbing, most appliances, heat and air, foundation, crawl space, drainage, etc. Home inspectors provide a detailed report of their concerns that a buyer can use to negotiate repairs with the seller.
It’s important to understand appraisals are for lenders while home inspections are for buyers. Appraisals are used to 
verify market value and that the home meets minimum standards while a home inspection is much more detailed about the overall condition of the home. They are two different animals.
Every buyer without exception should employ a licensed home inspector to make sure their dream home does not become a nightmare. There are several organizations, such as the American Society of Home Inspectors, that certify home inspectors with higher standards than state licensing boards, so you may want to look at the ASHI directory for potential inspectors.
In closing the form designed by the FHA and VA warning buyers to get a home inspection says “It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a licensed home inspector. You may arrange to do so before signing your contract, or may do so after signing the contract as long as your contract states that the sale of the home depends on the inspection.”
