When buying a home, it can seem like there is an endless checklist to complete before you finally get the keys. An appraisal and a home inspection are usually on that list, and if you've never gotten either one before, they can seem like pretty much the same thing. However, when looking at a home appraisal vs. home inspection, it is clear they serve different purposes. So what is the difference?
Home Appraiser
A good appraiser is unbiased and is supposed to determine the value of the home without being swayed either way by the lender or the buyer. The purpose of the appraisal for the lender is to be their eyes and ears, making sure the bank isn't making an unsound investment that will lose them money down the road. In the same way, an appraisal protects
the buyer by making sure they aren't paying too much for a home that isn't worth it by comparing it to other recent sales and taking the current market into consideration. While an appraiser will notice and must disclose any obvious repairs that are needed such as dirty or damaged carpet, chipping paint (especially in an FHA appraisal), etc, appraisers are not qualified to evaluate the structure of the home and other major systems. Sometimes, if we see something that looks suspicious, like a sagging roof or a foundation that looks like it might have water damage, we will mention it in the report, but the most we can do is recommend a further inspection by an expert. The bottom line is Appraisers determine the value of a home.
Home Inspector
Inspectors do a much more thorough inspection of the home than appraisers do: they will crawl through attics, into crawl spaces, check the electrical and plumbing systems, the roof, foundation stability, check for pest infestation, and more. They will make recommendations for safety and maintenance, and they make sure you know exactly what you are getting into when you are buying a home. A home inspection can be a great bargaining tool in the hands of the buyer (as can an appraisal), and it is always a good idea to get an inspection before buying a home. Home Inspectors do not determine value. As noted above, Home Inspectors create a report that let's the buyer know the overall condition of the home. Home inspectors usually have a construction background and can find things that the prospective home buyer cannot.
