Here are the main differences between an appraisal and a home inspection.
Though they can both be a source of contention in real estate transactions, appraisals and inspections are two very different things.
The best way to differentiate between the two is to ask a few basic questions about each: Who is it for, why is it being done, and how much does it cost? Today I’m answering these questions so that you can better understand why appraisals and inspections exist in the first place.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to skip to topics that interest you most:
0:22 — Appraisals are for the lender; home inspections are for the buyer
1:30 — The purpose of appraisals and why appraisal management companies exist
2:42 — Inspections afford buyers a comprehensive understanding of a property’s condition
3:42 — Appraisal costs are regulated, and appraisers don’t keep all the money
4:45 — General inspection costs versus secondary inspections (e.g., pool or radon inspections)
As always, reach out if you have any questions about this or any other real estate topic. I’m happy to be a resource for you and assist with whatever buying, selling, or investing needs you may have.
