What’s The Difference? Inspections Versus Appraisals

Going under contract symbolizes possibly being close to the date you have the keys to your new home in your hand. However, there are some important things left to complete before closing day. Here we will guide you on what to expect with the inspection and what takes place with an appraisal. 


The home inspection fully examines the property to give a rating on the current condition and alert a potential buyer of any major issues. The roof, attic, structure, electrical system, and plumbing are included in the areas that are reviewed for condition and problems. You will get a report detailing everything that was inspected and anything that needs repairing. The information will help you decide if you need to negotiate anything. 


Just about all mortgages will need to go through the steps to get an appraisal. The appraisal gives the estimated value of the home. Similar to an inspection, the appraiser will walk through parts of the house. They will do any research needed then create a final appraisal report. Normally, a lender will not give more than 97% of the appraised value of the home. A lower appraisal amount means you will have to pay the difference, negotiate more, or continue your search when it comes to the offer price. A higher appraisal report means you now have more equity in the home. 

Things To Know

An inspection will not change the loan amount you need, but an appraisal possibly can.

An appraisal is required by the lender for a home, but an inspection is not. 

Appraisers perform a quick walkthrough, but inspectors thoroughly check the property, including utilizing special equipment for the job. 

You will be educated on findings and possibly recommendations during the inspection. The information found will only be shared by the appraiser once they complete the report. 

The inspector and the appraiser have two purposes, two skillsets, and two reports that will share differing information.