The Difference Between a Home Appraisal and a Home Inspection

Filed under: Temecula Real Estate

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I’m often asked the difference between an appraisal and a home inspection. It’s common for buyers to confuse one with the other because of their home assessment similarities. Here’s what you need to know:

Home Appraisal

The appraiser’s job is to determine that the home you’re purchasing is actually worth the purchase price you’re considering. On the other end, your lender wants to make sure that home you’re purchasing has enough value to support the loan that they are making on the home.

Home Inspection

A home inspection is solely to reveal any defects with the home that you are buying. For example, is the plumbing intact? Is the electrical wiring functional? Are there any termites? Is there any water damage to the home?  How is the foundation and basement integrity? These things fall under the scope of the home inspection, and that is a very important step for the buyer to take to make sure they understand what they are buying.

Other Considerations

For a seller, a home inspector can serve as a second set of eyes on the home. They can point out features which may be a problem after escrow occurs, if these issues are not disclosed. But if they are in the home inspection upfront, the buyer and seller have the chance to hash out those issues before they go any further. If there are any issues with the home, it does not mean the home is not going to sell. Most issues are resolved before escrow is closed.

In summary, an appraisal is to assess the value of the home. It helps you by determining whether you are getting a good deal on your purchase. On the other hand, a home inspection is to help you understand exactly what you are buying since this is a major purchase, and you should be fully informed of the home’s condition.

If you have any further questions about home appraisals or home inspections, please give me a call, I’d love to talk to you about it. You can contact me at your convenience by phone, text, or email: (951) 473-0390 or [email protected].