What Is the Key Difference Between a Home Inspection and Appraisal?

Buying a home is always a huge investment. Therefore, evaluate the home’s condition and market value to ensure a good return on investment while reducing your risk of costly repairs. This is where a home inspection and appraisal can help. Most people confuse the two, considering them as the same thing, but they are different and help homebuyers in different ways.

Read on to learn more about home inspection and appraisal and how they differ from each other.

What Is an Appraisal?

An appraisal involves checking and verifying the condition of the house to determine a fair sales price for it. The appraiser will inspect the following:

  • Square footage of the home, the number of bedrooms and bathrooms, and the size of the area where the home is built.
  • Major systems and structures in the house to compare their current state against property records.
  • Condition of the house, including any visible signs of damage.

They also check the prices of similar homes sold in that area. After the evaluation, the appraiser will present a report stating the final value estimated for the home and how it was calculated. The report includes details of comparable sales, the current status of the area’s property market, and other information used to calculate the home’s price.

Also read: Selling Your Home: 5 Things to Do Before Selling Your House

What Is a Home Inspection?

A home inspection involves thoroughly evaluating a home to determine its present condition and potential damages. The inspector will examine the home’s structure, basement, attic, roof, electrical and plumbing systems, exterior, and other areas included in their checklist. If you are there during the inspection, they will take you through the evaluation process and uncover issues that can cause any future problems.

After the inspection, they will present a report describing what was inspected and damages that require repairs. Based on these findings, you can ask the seller to complete the repairs or pay full or partial repair costs.

What are the Differences Between a Home Inspection and an Appraisal?

There are a few differences between a home inspection and appraisal, including:

  • A lender requires home appraisals, not inspections.
  • You must schedule an inspection while the lender will order an appraisal.
  • An appraisal plays a vital role in mortgage loans, but an inspection will not.
  • Appraisers only check the visible signs of damage, but inspectors use special devices to detect in-depth damages.
  • Homebuyers can participate in the inspection, but only an appraiser will be present during the appraisal process.
  • An inspector will explain and educate during the inspection, but an appraiser will not reveal their findings during the process.
  • A home inspection only examines the home condition, but an appraisal will examine the condition of the home, lot size, features, amenities, crime rates, and comparable home prices.
  • The inspector and appraiser have diverse skills and areas of expertise and are trained and certified in different processes.

Also read: Who Can Attend a Home Inspection?

Worthy Home Inspection focuses on informing homebuyers about any impending safety hazards and significant flaws in the home and its systems, which can only be noticed during professional home inspections. Contact us at Worthy Home Inspection to schedule a professional home inspection and get a detailed, objective report of your future home.


Worthy Inspection Services, LLC

Worthy Inspection Services provides complete and affordable home inspection services in Central Washington. Our goal is to provide exceptional home maintenance and inspection services while maintaining quality, integrity and convenience. We are committed to providing honest, unbiased information to help our clients make an informed decision about their property.

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