Home Inspection vs Appraisal: What's the Difference?

Buyers are often surprised to learn that the appraisal their lender orders is not a substitute for a home inspection. The two answer completely different questions, and only one of them is working for you.

Different jobs entirely

An appraisal estimates the home's market value to protect the lender's collateral. It is a brief, comparison-driven valuation, not a condition survey. An appraiser is not crawling the attic, probing the EIFS, or scoping the sewer lateral.

A home inspection evaluates condition — the structure and systems, the defects, the safety issues — and it works for the buyer, not the bank.

Why you want both

The appraisal tells you the bank thinks the price is reasonable. The inspection tells you what you are actually buying and what it will cost to own. On a Minnetonka home, that means the cedar shake, the synthetic stucco, the panel, and the sewer lateral — none of which an appraisal touches.

Start with a full home inspection and read what an inspection includes.

Keep reading

Learning center · Defect library · Full home inspection