Home Inspection vs Appraisal: What’s the Difference?

Many homebuyers confuse inspections and appraisals, but they serve very different purposes in a real estate transaction.

Understanding the difference can help buyers navigate the process more confidently.

Home Inspection

A home inspection evaluates the condition of the home.

The inspector reviews:

• Roof

• Plumbing

• Electrical systems

• HVAC

• Structure

• Attic and insulation

• Options to add mold & Indoor Air Quality (AIQ) test, radon and water testing

The goal is to help buyers understand potential issues before purchasing the property.

Appraisal

An appraisal determines the market value of the property for the lender.

Appraisers compare the home to similar recently sold homes in the area.

Their job is to ensure the lender is not financing more than the property is worth.

Why Both Are Important

Think of it this way:

Inspection = Condition of the house

Appraisal = Value of the house

Both play important roles in protecting buyers during the home buying process.