When planning to buy a home it is clear that in the middle of the entire process many issues are taken into account. It is normal for everyone to know about mortgages, advances or even judicial or legal processes. However, very few know of a new concept that comes with this; and it is the appraisal. And that for many it tends to be quite confusing. And that is very different from a home inspection, a concept that for many is more than clear.

For this reason it is best to see the difference between an appraisal and a home inspection; what they consist of and what they demand. For those who are currently interested in buying a house; this way there is more knowledge about it and you will be even better prepared to face a home appraisal and a inspection.

The appraisal is a transaction with a measurable and accredited method, in which professionals use various metrics that validate the price given to the property; and the recurrence of the value that is in the market. In other words, it is thanks to this that it is possible to find out the prices that can be given to the respective properties. The goal of an appraisal is to ensure that the price you offered to pay for the home, which helps determine the size of the mortgage you will need; it is fair and reasonable considering current market conditions. Just because an appraisal indicates that the home costs less than what you offered does not mean that you cannot buy the property. A lower appraisal could serve as a token to negotiate a lower purchase price.

It is an internal description, a description of materials and structures, a time inspection, type of maintenance, type of housing conditions; they do not incur these comparative measurements with other properties. If the inspection reports arrive in good enough shape and without problems; You as a customer can rest easy, but if an inspection finds flaws in a property; you can rescind your offer to buy or at least use the findings to make a new negotiation; or, on the contrary, ask that these problems be solved to avoid disagreements in negotiations.

When getting involved in these issues, the opinion of a professional is important. On this occasion we recurred to Ciany Devoto, NATIVU Cartago’s real estate advisor. She told us her respective opinion on the matter.

“Depending on the budget available to the client, always me as an advisor, I would recommend that, if you do not have the money to do the appraisal, that you should do an inspection, but one or the other depending on the client’s budget, but in terms of staff would recommend the appraisal ”.            Ciany Devoto.

In any of the cases, it can be seen that clients obtain a multitude of benefits and in the vast majority, negotiable, if required. However, many times with these issues come certain risks.

And the thing is that there is a great shortage of resources, to be able to argue when there is a buyer; the buyers in many occasions are not arranged to pay the respective prices for the reasons that they consider feasible, then by not having an appraisal or transaction; or even inspection, limits the negotiation process.

Typically when you are faced with a home inspection; what is sought is if the property in which I am interested is in good condition or needs some remodeling; One risk in the midst of all this is that in the worst case; if a defect is found in the property, the responsibility for remodeling falls on you, since you are the interested party; And all this includes from the roofs, structural elements, interior pipes, exterior surfaces, electrical systems, appliances, basements, garages, vents; in short, it is about the whole house as such. And one as a buyer must always be sure of his decisions; Because at the time you waive an inspection, any problems that arise or arise after the sale are generally your sole responsibility.

In the worst case, it may happen that the value of the appraisal is higher than the purchase; If this happens, you as a buyer will have to pay more for your real estate insurance; In addition, he would have problems with the tax agency, and along with this too; the more money the bank lends to us as buyers, the more interest will have to be paid.

However, not everything is bad in this; If the appraisal value is higher than the purchase, this leaves at least an advantage; and it is that for the buyer it will be possible the absolute financing of the price that he has paid for the house. As a result, this leaves an advantage for the financial institution, which is to ensure some benefits for the investment during the duration of the loan, as well as the contracting of insurance, among others.

Whatever decision is made, between an appraisal and a home inspection; always the best recommendation is to carefully analyze the two options; and see which can be the one that brings more benefits for you as a buyer interested in the property that you choose or like to have. Even asking for professional help never hurts; as a result this will be better at all times of due process; it will always be the best advice you can follow, so if you need to follow some of these two processes tomorrow or in a while; take note of each point and be careful at each step.