The Difference Between an Appraisal and Inspection

Here are the differences between an appraisal and a home inspection.

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Today I’ll go over the difference between an appraisal and a home inspection. The terms are often used interchangeably, but they’re separate things that serve different purposes. Here are the main differences you should know, since you may be asked to waive one or the other in this market:

An appraisal looks at your home's value compared to other homes that have sold. A bank isn't interested in lending more money than a property is worth, so they hire an appraiser to compare it to other recent sales and find out what the market value is. Their goal is to ensure that the home's value is at least that of the sales price.

    Appraisal and inspection are often used interchangeably, but they serve different purposes.

A home inspection looks at the condition of the property itself. A licensed and certified home inspector will spend three to four hours, depending on the size of the house, looking at every part of the property. They'll turn on the faucets, check for leaks, make sure the electrical outlets are wired correctly, and even jump up on the roof. They’ll check the condition of all the home's systems and provide a full inspection report for the buyer and their attorney that details anything wrong with the property.

This is a very brief overview of the differences, so if you have any more questions for us, please email or call us. We look forward to hearing from you and answering any questions you may have.

1 comment :

  1. Because estate agents are area-based, they have expert insight into the best areas for property, places to avoid, as well as the true value of a property. This will benefit both the buyer and seller.