Appraiser, inspector. They’re the same thing right? No, absolutely, unequivocally, irrevocably not. Not the same thing at all. You’re going to need both.
I always recommend that buyers have a home inspection done – even if the house is brand spankin’ new. Appraisers and inspectors are are both people who come out to look at the house and give you an opinion. Sometimes the two get confused in brains that are already spinning with thoughts of underwriting, offers, negotiations, etc (Hey Mr. Buyer, that spinning brain would be yours!). Here’s a little cheat sheet to tell you who you are talking about and why.
Appraisers
You’re paying for it but the appraiser is really looking out for the lender’s best interest. His/her job is to make sure that the property you are buying is actually worth what you are paying for it. In some cases, they’ll point out needed repairs and require that they be done but it’s really just a cursory look over the home. If there are issues that affect the safety and welfare of the occupants, they’ll require that they be fixed. Especially if you are using FHA financing but increasingly even with conventional loans. Some things that might be pointed out: missing or deteriorated railings, non-functioning HVAC units, obvious mold, or leaky roofs.
The key point to remember with appraisers is that, even though they may point out obvious repairs, their real job is determining a value, a reasonable price for the house.
Inspectors
As I mentioned, there’s no requirement for a home inspection. This guy (sorry, but they almost universally have a mismatched pair of chromosomes) works just for you. He doesn’t have a horse in the pricing race, he’s just there to nitpick. You want an inspector who will point out every flaw, large and small in your new home. Don’t be surprised if he gives you a laundry list a mile long, usually with a guide as to whether each item is a serious issue or just something to think about.
He’s going to test the outlets to make sure they work, check out the roof and look for minor leaks that might not be showing up inside yet. He’ll also make sure there’s adequate insulation and that the plumbing is all working OK. That crack in the basement? He’ll tell you whether it’s normal settling, something to be concerned about or perhaps that you need to talk to someone above his pay grade (that would be a structural expert).
What’s an inspector’s job? To point out everything you didn’t notice that might be wrong with the house. If you find things you can’t live with you can use your inspection contingency (you do have an inspection contingency don’t you?) to back out of the contract without a penalty, i.e. losing your earnest money.
Why do you need two different people to look at a house and give you an opinion? Because they are looking for different things, and effectively working for different people. Don’t fall into the trap of thinking that just because you are getting an appraisal you don’t need an inspection.
