Home Inspection vs. Appraisal: What's the Difference?
Home inspections and appraisals are sometimes treated as interchangeable, but they answer two different questions: an appraisal asks "what is this home worth?" while an inspection asks "what condition is this home actually in?" Understanding the difference matters because a home can pass one and have real problems the other would catch. What an appraisal covers An appraisal, ordered by the lender, compares the home to recent sales of similar nearby properties to arrive at an estimated market value. The appraiser does walk through the home and note its general condition and major features, but the process is focused on value, not a detailed evaluation of systems and components. What a home inspection covers A home inspection, typically arranged by the buyer, is a much more detailed examination of the property's physical condition — roof, foundation, electrical, plumbing, HVAC, and other major systems. A licensed inspector produces a report flagging existi...