Home Appraisal vs Home Inspection

Home Appraisal vs Home Inspection

Summary: A home appraisal and home inspection may seem similar since they evaluate homes, however, they are vastly different in their evaluation process. An appraisal determines the value of a property based on recent sales of comparable properties as close geographically as possible. General notes and comments on the condition of the property are also noted. An inspection is a thorough examination of the property’s condition including the mechanicals of the home.

If you are a first-time home buyer or a seasoned buyer, consider a home inspection and your mortgage lender will let you know if an appraisal will be required. Home appraisals and inspections are beneficial to buyers who are considering a home mortgage loan. Both make sure the potential owner is purchasing a functionable and safe property at an accurate and fair price. They may seem similar as they evaluate a buyer’s property; however, an appraisal determines the value of a home while an inspection determines the condition.

Home Appraisal:

  • A more accurate assessment of the home’s value.
  • An appraisal management company that is not connected to your mortgage lender will send an appraiser.
  • Visual attributes such as upgrades and imperfections within the interior and exterior of the home will be noted.
  • The appraiser will compare your house to recently sold homes within the neighborhood to help determine your home’s value.
  • Homeowners will learn the value of their home in the final appraisal report.

Home Inspection:

  • Home inspectors focus on safety issues and damages within the home.
    • Safety issues include electrical wires hanging out, cracks in the foundation, or mold.
    • Home damages include an unstable roof, pipes, or leaking walls.
  • Home inspectors look beyond the visual attributes and dig deeper to get a sound understanding of the home.
  • The home inspector will inform and educate the homeowner of any current and future problems and provide viable solutions.
  • A report summarizing the condition of the home will be provided at the end of the inspection.

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