Whether you are new to the real estate sector or a veteran, it is apparent that you have come across or at least heard about the following two terms – building inspections and property appraisals.
It is best to keep in mind that an official from a company offering building inspections Newcastle and another from a property appraisal firm might be looking on a single property at the same time but their motive is completely different.
As someone who is associated with the real estate sector, it is important that you have a deep understanding of these two aspects of real estate transactions. This will enable you to make sure that the real estate transactions go down as seamlessly as possible.
Building inspection process in brief
A building inspection process involves evaluating the physical condition of the property. A property inspector will examine a piece of real estate for its overall functionality, structural integrity and operational condition.
The main reason for conducting building inspections is to make the buyer and seller aware of the overall condition of the property before the transactions are made final. Most of the time, the buyer pays for the building inspection since it is in the best interest of the buyer to do so!
Time and again, cases of information concealment have come into light where the seller withheld information from the buyer such as a rotting roof or a basement that is prone to flooding. In such a situation, if the buyer invests in such a faulty piece of real estate, further down the road, it could cost the buyer a lawsuit.
Property appraisal process
The role of an appraiser is to generate or rather submit a report on the overall market value of the property in question. The appraiser mainly focuses on the overall conditions of the fair market and the available elements on the property itself to come up with the final report.
Comparing property appraisal and property inspection in brief
The primary difference between a property appraisal and a building inspection is that the former deals with the exact market value of the property. Building inspection, on the other hand, deals with the exact condition of the property so that it is deemed safe for sale and purchase.
An inspection process is only a part of property appraisals. A property inspection process concludes as soon as the inspector gives the ‘go’ sign after inspecting the details of the property.
An appraiser, unlike a building inspector, will research on the details and overall values of similar properties available in the market and come up with the exact market value of the property.
Factors that influence the results charter out by an appraiser are as follows:
- Nearby amenities such as market, health care facilities, educational institutions
- The average rate of crime in the area
- Size of the lot
- Overall results of previous boundary surveys conducted in the property and the likes.
Both building inspections and appraisals are important when it comes to real estate transactions. Building inspections and appraisals make sure that both parties involved in a real estate transaction are getting the best deal in their end. Complete peace of mind is necessary when one is investing in real estate, be it a commercial property or a residential one. Building inspections are mandatory if you want to make sure that your investment is safe in the long run.