Inspections vs. Appraisals: Understanding the Key Differences and Similarities

Everything you need to know about inspections and appraisals.

Whether you're buying or selling a house, two words you will hear are inspection and appraisal, but a lot of people don’t understand the difference between the two. Today, I’m here to clear this up. During a real estate transaction, two professionals will look at the property and make an assessment: an inspector and an appraiser. 

With an inspection, a licensed home inspector will inspect the house to ensure it’s in good condition, that the plumbing works, the electrical was done currently, and more. They’ll see things most other people won’t catch, like the structure of the home. This doesn't mean everything they catch needs to be fixed before the house is sold, but the buyer at least needs to be aware.

Then comes the appraisal, where a licensed appraiser comes out to the property to make sure the house is in generally good condition. They won’t go into as much detail as the inspector, but they want to make sure the home is worth what the buyer is going to pay for it. They're protecting the bank, so most of the time, it’s the bank who orders the appraisal. The appraiser will make sure the buyer isn’t being taken advantage of in this market and that the home is truly worth the loan amount. 

"Appraisers and inspectors have different purposes, but both protect the buyer."

There are two different professionals with two different purposes, but they're both working to protect the buyer and make sure they’re getting the house they want at the right price. If you have any further questions about this topic or need help navigating this process, don’t hesitate to call or email me anytime. I would love to hear from you!