Here’s how home appraisals and home inspections work independently.

The terms appraisal and inspection are often used interchangeably, but they’re two separate things that serve different purposes in a real estate transaction.

An appraisal looks at the value of a home 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 its market value is. Their goal is to ensure that the home’s value is at least that of the sale price.

Appraisals and inspections each serve a different purpose.

A home inspection looks more at the condition of a property. An inspector will spend two to three hours looking at the nitty-gritty parts of the property. They’ll turn on the faucets, check for leaks, make sure outlets are wired correctly, and even hop up on the roof. They’ll check the condition of all the systems in your home and will provide an inspection report at the end that details anything wrong with the home and recommendations for repairs and upgrades.

This is a brief overview of the differences, but if you have more specific questions about this or any other real estate topic, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.