Buyers often ask about the difference between an inspection and an appraisal. While both typically happen after an offer is accepted, they serve different purposes.
Home inspection
A home inspection is generally arranged by the buyer and focuses on the physical condition of the home, looking for issues with systems like the roof, HVAC, plumbing, electrical, and structure. The inspector typically provides a detailed report of findings.
Home appraisal
An appraisal is usually ordered by the lender (when financing is involved) and focuses on determining the home's market value to confirm it supports the loan amount. An appraiser typically compares the home to similar recently sold properties.
Why both matter
An inspection helps a buyer understand what they're purchasing, while an appraisal helps confirm the home's value for lending purposes. They can lead to different types of conversations and, occasionally, renegotiations during a transaction.