Home Inspection vs. Home Appraisal

Home Inspection vs. Home Appraisal

It's common for both buyers and sellers to mix up the difference between a home appraisal and a home inspection.

After all, they're both essentially an assessment of the premises and both require a specialist to visit your property.

Nonetheless, there are some significant distinctions between an inspection and an assessment, such as the nature of the visit itself and what transpires when the appraiser or inspector arrives.

In this post, we are going to talk about the most significant differences between these two processes and find out when we need which one.

What is a Home Appraisal?

An appraisal is a procedure used by a company (often a mortgage lender) or a private person to ascertain a property's value.

A property appraisal is typically required by the bank or mortgage lender if the buyer is looking for financing for the acquisition.

This is because the house acts as security for the mortgage; if its value declines below that of the loan, the lender may experience problems in the future.

They send an appraiser to assess the property and establish its worth in relation to the asking price in order to reduce this risk.

An appraiser will walk through the house you're interested in purchasing to evaluate its characteristics (such as the number of bedrooms and bathrooms) and any upgrades that could have changed the property's worth.

Comparable properties, or comps, are similar homes in the neighborhood that have sold within the past ninety days. The appraiser may also review these properties.

The appraiser will next use this data to assess the home's current market worth and create an appraisal report.

What is a Home Inspection?

A home inspection comprises a professional visiting the house and carefully assessing its condition.

This expert is frequently someone who is qualified or licensed by the state. The house inspector will search for damage, potential risks, and other problems, frequently devoting some time to inspecting the HVAC system and other main home systems.

Occasionally, the inspector will enter crawl spaces or attics to examine the foundation.

Although it is not strictly required, it is strongly advised that the buyer be present during the house inspection.

The home inspector may go over every room with you and explain how serious any problems are if they arise.

home appraisal vs home inspection

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You have the chance to question the inspector about whatever you or they find out at this point.

If you need more information about home inspections, click the what is home inspections article to find more.

Differences Between Home Appraisal and Home Inspection

Below we have mentioned the differences between home appraisal and home inspection: Home appraisal vs home inspection.

If you are wondering which one to do; appraisal or inspection first, this part will help you decide.


  • Home appraisal: In house sales, appraisals are virtually always employed, and they are frequently used in refinancing transactions. In a purchase-and-sale transaction, the appraisal is used to assess if the contract price of the house is reasonable in light of its attributes, condition, and location.
  • Home inspection: Home inspections reveal maintenance and safety concerns that might cause major difficulties and costly repairs in the future. Everyone may better grasp a property's condition and associated dangers by conducting an inspection before moving forward with a deal.

Need more information about home inspections? Click here.


  • Home appraisal: The appraiser will count the number of bedrooms, make sure there are no safety risks, and evaluate how well the house's systems are working. Their main goal is to ascertain if a house is fit for habitation. The house's appraised worth may be significantly less than anticipated if it is determined to be dangerous.
  • Home inspection: A qualified home inspector will assess the heating and cooling system, water and sewage systems, and other plumbing, and electrical work, and look for any potential fire or safety hazards.

Conducted By

  • Home appraisal: An independent appraiser determines the worth of a house by evaluating a number of criteria.
  • Home inspections: A home inspector who has the necessary training and credentials often conducts house inspections. A written report of findings is prepared by the inspector and delivered to the customer.


  • Home appraisal: under normal circumstances, it might take one to three weeks to complete an assessment report. The intricacy of the report and the size and cost of the property being evaluated might have an impact on preparation time.
  • Home inspection: The duration of a home inspection might vary based on the size of the house and its components, but it usually takes two to two and a half hours. It might take half the time to sell a smaller property, such as a condo. Completing an inspection report often takes a day or two.


  • Home appraisal: The specifics of the house, such as its size, condition, floor layout, and amenities, as well as research on previous sales of comparable properties and market trends, are used by a certified appraiser to compile a report.
  • Home inspection: A complete report outlining the state of a property is what a typical home inspection report looks like. Generally, it consists of the following: general data, a summary of the findings, in-depth observations, recommendations, and images.


  • Home appraisal: All parties involved in the house-buying process gain from a home evaluation. An assessment guarantees that purchasers are paying the current fair market value. An appraisal aids sellers in setting a competitive price for their residence.
  • Home inspection: Buyers might feel more at ease knowing that the home they are purchasing is stable and devoid of any significant problems if they have an inspection. In addition, sellers may utilize the inspection to point out areas in need of repair or to show prospective purchasers that the property is in good shape.


  • Home appraisal: The size and location of the property, the difficulty of the evaluation, and the appraiser's experience are some of the variables that might affect the price of a house appraisal if you are wondering about the home appraisal vs home inspection cost. It usually costs between $300 and $500 for a single-family house.
  • Home inspection: In the US, a house inspection typically costs between $300 and $500. However, a number of variables, such as the home's location and size, the inspector's expertise level, and the inspection's complexity, might affect the final cost.

Note: If you are wondering who pays for inspection and appraisal, you should pay attention that It is typical for the buyer to cover the costs of the appraisal and inspection in real estate transactions.


  • Home appraisal: An appraisal not only provides a value estimate for your property but also shows you how much a lender will allow you to borrow for it.
  • Home inspection: The property's general state is evaluated for damages, safety and fire hazards, and other factors that may impact the property's worth.

Regulatory Standards

  • Home appraisal: Federal Appraisal Regulations (a set of nationally recognized ethical and performance standards for the appraisal profession) and the Uniform Standards of Professional Appraisal Practice (pertain to real estate deals with loans that are government guaranteed) are the two main organizations that set the regulatory requirements for house appraisals in the US.
  • Home inspection: The minimal requirements for a professional home inspection are outlined in home inspection standards. States and nations have different criteria, but generally speaking, they address the following: structural elements, exterior, roof, HVAC system, electrical system, plumbing system, interior, and insulation.

Common Misconceptions About Appraisals and Inspections

Below we have mentioned some of the common misconceptions about appraisals and inspections:

  • Inspections and Appraisals Are the Same: An appraisal is not the same as a house inspection or an engineer inspection, despite what the general public believes.
  • The House Is the Only Basis for Appraisals: A house's physical characteristics are important in determining its assessment, but other elements that impact the location value also have an impact on the total worth.
  • The Value of a Home Is Always Increased by Improvements: Although certain renovations might raise the value of your house, others might not have the desired effect.
  • The Sale Price and the Approved Value Must Match: It is possible for a property's appraised value and selling price to differ. When all other factors are taken into account and there is no pressure on either party, the assessed value is an unbiased assessment of a property's most likely value.
  • Thinking that inspections and assessments are optional: Lenders typically need evaluations to make sure the property is worth the full amount of the loan. Although they are not usually required, inspections are strongly advised in order to find any possible problems with the property.


Who pays for inspection and appraisal?

The buyer usually bears the cost of the appraisal and inspection in real estate transactions.

Does home inspection affect appraisal?

Generally speaking, the house inspection has no bearing on the home appraisal because these are two distinct procedures carried out by different specialists.

To assess the general condition of the house, a home appraiser could request a copy of the home inspection report. It is normal for the total worth of the house to drop if there are significant issues like a failing electrical system, a leaky roof, or a damaged HVAC system. However, each scenario is unique.

What is the difference between a home appraiser and an inspector?

A home inspector conducts a home inspection to assess the state of the house, whereas a home appraiser determines the worth of the house.


In this article, we found out about the difference between a home appraisal and a home inspection. These differences will be helpful to people who cannot decide which one to choose; an appraisal or inspection.

Before you decide which one to choose, you should exactly know how they are different in their cost, purpose, report, and many other aspects.

Let us know if this post is useful for you.