Home Inspection vs. Home Appraisal: What's the Difference?

The home buying and selling process can be stressful, filled with unknowns and new terms. Get ahead of the game and take a closer look at two common real estate transaction processes. While both consider the interior and exterior of your home, home appraisals and house inspections are very different. Here is a quick rundown of each:

Home Inspection

Typically conducted shortly after an offer has been accepted, a home inspection focuses on the condition of the home and is the final, most critical step in the home buying and selling process. For the buyer, the inspection can help you decide whether you would like to move forward with the purchase as it can reveal significant problems, like mold, electrical issues, HVAC repairs and more.

If you are planning to sell your home, invest in a home inspection before putting your house on the market. Home buyers can use the inspection as contingency in their contract so addressing any issues found beforehand is a great tactic to maximize your asking price.

Things to keep in mind:

• They are not required by lenders, so, they won’t affect your loan approval.
• Home inspections do not specifically check for termite damage or asbestos. Ask the inspector if you have any concerns to make sure.
• If you are a home buyer purchasing an older home, unexpected problems may come up that weren’t visible during inspection.

Home Appraisal

From landscaping to fresh paint, attention to detail can turn into higher value during home appraisal. It can be a home seller’s saving grace and catch the eye of a potential buyer. As a home seller, prepare your home to ensure the highest appraisal possible. Make sure to research your market, clean house and remember first impressions are important during the appraisal process.

Things to keep in mind:

• Appraisals are typically required by lenders and can affect your loan approval.
• Outside factors also play a role in home appraisal, for example the neighborhood, school district, comparable homes values, local crime rates, and even potential construction in the area.

Want to learn more? Read our Home Inspection 101 and Ace Your Home Appraisal Insights articles for more tips and information. Don’t forget to check out our Home Buyers and Sellers Corner as you navigate your real estate journey.