What is the Difference between a Home Inspection and an Appraisal?

A home is the biggest investment you will make in your life. Any negligence will land you with a bad investment for the rest of your life.

Therefore, it is important to do everything that is reducing potential risks.

But, is it possible to do this before buying a home? Well, it surely is! You can reduce threats by conducting a home inspection and appraisal.

Most people are of the opinion that they are similar. However, they are poles apart. While both the processes involve evaluating a property, they are done for different reasons.

In this article, we have expounded the difference between a home inspection and home appraisal. Without further ado, let dig right in -

Home appraisal

A home appraisal is carried out to estimate the market value of a property.

In this process, a third-party appraiser will visit the location and assess its condition and value of other similar properties in the locality.

He will conduct a walk-through inspection, investigating comparable and creating the final appraisal report.

Home inspection

Home inspection is the process of determining the present condition of the property. A home inspector will conduct a thorough inspection and unveil potential risks and threats.

The common inspection checklist includes examining foundation, roof, attic, electrical system, plumbing, basement, and other important elements.

It is advisable to tag along during an inspection. The inspector will walk you through and point out important issues.

Difference between a home appraisal and home inspection

Since both serve different purposes, here are a few points of difference between appraisal and inspection -

• Mortgage lenders require home appraisal only. Whereas, buyers can conduct home inspections.

• An appraisal will decide your ability to get a mortgage loan. Home inspections will have no effect over mortgage loans

• Appraisal is a superficial process. Whereas, a home inspection involves the use of advanced tools to determine the condition of a property.

• A buyer can tag along during an inspection. Appraisals are done by professionals only.