Appraisal vs Home Inspection – Ocean Hills Home Purchase

When purchasing an Ocean Hills Country Club home, you will need both a property appraisal and a property inspection.  You will also need to do this when refinancing your Oceanside home. Not only should buyers complete an appraisal for their own benefit to make sure they are getting the best deal possible on their new Ocean Hills home, it is the only valuation report most banks will consider when deciding whether or not to lend the money.


Appraisers are certified, California state-licensed professionals who have no personal stake in the worth of a property. Prudential California real estate agents who put a Ocean Hills  house on the market will often complete a Comparative Market Analysis, or CMA, before pricing the Oceanside home, but this is not the same as a full appraisal, although experienced professionals’ value estimates may come close to the appraisal. The lender may use their own appraiser, or if they let you select the appraiser, the appraisal may be subject to review.

Appraisals typically include details about the Ocean Hills Country Club property and side by side comparisons of a few similar Ocean Hills properties; an evaluation of market in your area, notes on issues the appraiser believes may negatively affect the property value or are serious flaws, and an estimate of the average sales time for the property.

There are two types of appraisals: the sales comparison approach, in which the appraiser determines your Ocean Hills property’s value by comparing it to similar Oceanside  properties, and the cost approach, in which the appraiser estimates how much it would cost to replace the structure. The second is more common for newer homes, while the former is more frequently used for older Oceanside homes.

Home Inspection

It is important to note that an appraisal is not a home inspection on the Ocean Hills Country Club home you plan to buy. An inspection is designed to find any problems that may prove costly for the owner of the property and involves testing appliances, heating and air conditioning, making sure the plumbing and wiring are up to code and other tasks. The appraisal will not check for these and thus cannot tell you whether many parts of the Ocean Hills home are in good condition.  Your Realtor, Gary Harmon, will suggest the names of a number of proven home inspectors that you can call.  The home ispection will usually last about 3 hours.  After the home inspection, you will receive a lengthy report.  You will then discuss the report with your Realtor and generate a “Request for Repairs.”

For more information see an eariler blog:  Appraisal vs Home Inspection.

For more information on an appraisal or a home inspection, contact Gary Harmon, your Ocean Hills Country Club Realtor.