Home Appraisal Vs Inspection: 8 Important Differences

Home appraisal


Home appraisal VS Home Inspection infographic

Learn more: Important Guide On Real Estate & Home Buying In Delaware

Home appraisals and inspections are not the same things, despite popular belief. While both services include an assessment of the property, they do so for quite different reasons and with very different outcomes for the homeowner. Continue reading to learn more about the differences between appraisals and inspections, as well as how each might benefit you as a home buyer. 


What is an appraisal? 

An appraisal is a process that determines the estimated market value of a home and is required for practically all mortgage loans. A third-party appraiser considers the home’s location, condition, and the value of similar previously sold residences in the region when determining the value. Walking through the house and writing a final assessment report is part of the appraisal process.  

This report will provide the lender with the final determination of the home’s market value, which will be used in making the loan amount approval decision. The lender can normally finance no more than 97 percent of the home’s appraised value.  

Home appraisal

What is a home inspection? 

A home inspection is a thorough evaluation of a property to establish its current state and identify any potential red flags. A house inspector will inspect the structure, roof, attic, basement, electrical system, plumbing, exterior, and other issues on their inspection checklist during the inspection process.  

If you’re there throughout the inspection, the inspector will walk you through the procedure, pointing out any flaws and revealing anything that could cause a future problem. 


Check out this post: 3 Terrific Benefits of Property Appraisal 


You’ll get a report of the findings after the inspection. This report will outline what was inspected and detail any issues that need to be addressed. You may want to bargain with the seller to have them perform the repairs or pay for a portion (or all) of the repair costs based on these findings. 

Home inspection

Home appraisal VS home inspection 

Simply said, a home appraisal assesses the home’s value, whereas a home inspection determines the home’s condition. There are a few other distinctions between an assessment and an inspection since they serve different purposes: 

  1. A lender will request a home appraisal but not a home inspection. 
  2. While you must schedule your inspection, a lender will arrange an appraisal on your behalf. 
  3. Your ability to obtain the loan amount you require may be impacted by an appraisal. An inspection will not suffice. 
  4. Inspectors employ specific gear and training to uncover underlying flaws, whereas appraisers only look for things that are visible to the naked eye. 
  5. During the inspection, home buyers are allowed (and encouraged) to go through the house with the inspector. Typically, an appraiser will complete the appraisal procedure on his or her own. 
  6. During the interactive process, an inspector will explain and educate you. An appraiser will not reveal their results to you until they have finished their report. 
  7. When making an assessment, a home inspection solely looks at the condition of the house. Whereas for a home appraisal, the condition of the home, similar home prices, lot size, home amenities, neighborhood crime rates, and school zones are all determining factors. 
  8. Each inspector and appraiser has their unique set of skills, is trained and qualified in different processes, and has a distinctive area of expertise. 

Learn more: How To Buy A House In Delaware

Home inspection

Bottom line 

Appraisals and inspections have a few aspects in common, even though they have different processes and serve different purposes.  

For starters, they assist both the homeowner and the lender by ensuring that the home is worth what you’re paying for it and is safe to live in. Both can make you feel confident in your decision to buy the house or walk away from the contract by uncovering any difficulties that may influence the sale.  

Furthermore, you can trust the findings of these services because they are conducted by a third-party specialist who has nothing to gain or lose from the results. 

They also have one thing in common: the homeowner is responsible for paying for the service. That may appear to be unjust, but both services are worthwhile.  

What do you think about home appraisals and inspections? Would you consider getting both? Let us know in the comments section.  

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