Appraisal vs. Inspection: What’s the Difference?
Today I'm answering the common question “What’s the difference between an appraisal and an inspection?”
I get this question all the time: What is the difference between a home inspection and an appraisal?
In short, the inspection deals with the questions about the condition of the home—does the furnace work? Does the air conditioning work? Are there issues with the foundation? Is radon present?
"The inspection deals with the condition of the home."
Typically, the Realtor will give you a list of approved inspectors for the area. This is something you’ll want to attend to, as there is a lot of information you can gather from an inspection.
On the other hand, an appraisal has to do with value, and as a lender, that’s something we primarily deal with. We will handle ordering the appraisal for you from our roster of approved, local appraisers.
Value is ascertained by taking the three most comparable sales in your neighborhood—if you’re watching the value in your neighborhood go up, your home may actually appraise for more if you’re going to refinance or list that property at that time, based on the recent sales in your neighborhood.
Feel free to reach out to me if you have any questions.