Leave a Message

Thank you for your message. We will be in touch with you shortly.

The Difference Between an Inspection and an Appraisal

For Buyers Laura Miller Edwards Realty Group July 3, 2024


When you decide to buy your first home, you may come across a number of terms and conditions you’re not familiar with. While you may have a general idea of what an inspection is, maybe you’re not sure why you need one or how it’s different from an appraisal. To keep it simple, here’s an explainer of each one and what they mean for you as a homebuyer.

Home Inspection

Once you’re under contract on a home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear idea of the safety and overall condition of the home – which is important for such a big transaction. As a recent Realtor.com article explains:

A home inspection is something that protects your financial interest in what will likely be the largest purchase you make in your life—one in which you need as much information as possible.”

If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. And don’t worry – you don’t have to go through that process alone. Your real estate agent will be your advocate and negotiate with the seller for you.

Home Appraisal

While the inspection tells you about the current state of the house, an appraisal gives you its value. Bankrate explains:

“When buying or selling a home, an appraisal verifies that the sale price of the home is in line with fair market value. This ensures the homebuyer doesn’t pay more than the home is worth, and the mortgage lender doesn’t lend more than it is worth.”

Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.

And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted real estate professional will help you navigate any additional negotiations to try to close the gap.

Bottom Line

The inspection and the appraisal are different but equally important steps when buying a home – and you don’t need to manage them by yourself. Let’s connect today so you have expert guidance from start to finish.

This blog post previously appeared on https://www.simplifyingthemarket.com/en/2024/06/27/the-difference-between-an-inspection-and-an-appraisal?a=106260-312309902871c1f0d820820f58bf8fde. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. and the Laura Miller Edwards Realty Group will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Recent Blog Posts

Stay up to date on the latest real estate trends.

Forecasts

The Truth About Where Home Prices Are Heading

Here’s what the experts project for home prices over the next 5 years. And spoiler alert – it’s not a crash.

Mortgage Rates

Mortgage Rates Are Stabilizing – How That Helps Today’s Buyers

While affordability is still tight, mortgage rates have shown signs of stabilizing in recent months.

Selling Tips

What Every Homeowner Needs To Know In Today’s Shifting Market

The housing market is getting back to a healthier, more normal place. Here's what to expect.

A modern, open-concept living space with white walls and hardwood floors

For Sellers

Why Most Sellers Hire Real Estate Agents Today

Selling your house without a real estate agent as a “For Sale by Owner” (FSBO) may be something you’ve considered. But you should know that, in today’s shifting market… Read more

Pricing

The Five-Year Rule for Home Price Perspective

Headlines are saying home prices are starting to dip in some markets. Here’s what you need to know.

Affordability

Buying Your First Home? FHA Loans Can Help

If you’re a first-time homebuyer, you might feel like the odds are stacked against you in today’s market. But there are resources and programs out there that can help.

Staging

The Rooms That Matter Most When You Sell

Now that buyers have more options for their move, you need to be a bit more intentional about making sure your house looks its best when you sell. And proper staging c… Read more

A living room with various furniture with cream-color décor, a stone fireplace, and large windows.

Agent Value

Common Real Estate Terms Explained

Getting to know these basic real estate terms will help you feel a lot more confident throughout the home buying process.

Buying Tips

Why Buyers Are More Likely To Get Concessions Right Now

Especially in areas where inventory is rising, both homebuilders and sellers are sweetening the deal for buyers with things like paid closing costs, mortgage rate buy-… Read more

Work With Us

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact us today.