Home inspection VS. Appraisal?

When purchasing a new home, it’s important to know the difference between home inspections and a home appraisal. Both the inspector and appraiser play crucial, yet very different, roles in the home purchase process. 

The Home Inspector Looks for Defects

Home inspections are not required for your mortgage loan; however, it is recommended that every home buyer get one and make it a contingency of the sale. Once the home buyer or their agent orders the inspection, a home inspector will visit the home to check items such as roofing, flooring, windows, plumbing, and electrical systems for material defects. Home buyers are welcome to be at the home during the inspection. This is a great opportunity to find out the ins-and-outs of the home’s various systems. If defects are found and the seller agrees to repair the defect, the work must be completed prior to closing.

The Home Appraiser Looks for the Property’s Value

Appraisals are required for your mortgage loan, to determine the home’s collateral value for the lender.

A certified home appraiser will check the overall condition of the property, measure the home and note any remodeling. They will also check for basic health and safety items and compare the property to similar properties that were recently sold in the neighborhood. A formal appraisal report is issued to the lender and home buyer noting the property’s value.