So What’s The Difference Between an Appraisal and a Home Inspection?

 Home Inspection and Home Appraisal are two entirely different evaluations.

First off, in general, the appraisal is the professional opinion by an appraiser of the property’s monetary/market value, which will involve either a written or oral report depending on the situation. I find that the most common type of appraisal is usually for mortgage lending purpose so a lender can determine how much money to loan the buyer.

When conducting an appraisal, the appraiser visually observes areas that are readily accessible. He or she is looking at the condition of the property and it’s facilities, and will note any maintenance that has been put off and adjust accordingly if it’s enough to impact the marketability or value of the home.  Appraisers in most states require a license by the state they operate in or a certification in order to provide an appraisal.

On the other hand, a home inspection is the professional opinion by a home inspector of the property’s condition - an independent, unbiased visual review and report on a home’s systems, components and conditions. 

Think of a home inspector like a doctor – a general practitioner who is giving you a physical exam.  When you get a physical examination your doctor does a general examination to check your body’s condition and overall general health.  This usually involves a weigh-in, blood pressure reading, temperature, reflexes, blood sample, etc. 

If the doctor happens to find anything out of the ordinary he or she will refer you to the specialist you need to visit and they will give you a further evaluation and recommend a remedy.

For example if during the physical exam the doctor finds that you have a heart condition that may be serious, then the doctor will recommend you see a Cardiologist, who can further diagnose the condition and recommend a remedy.

This is basically the same for a home inspection.  The home inspector is essentially a general “house practitioner” performing a physical on the home.  Instead of evaluating your health like a doctor, the home inspector is evaluating your home’s health - so to speak.  He or she visually examines the home or property and when conditions are found that need the attention of a specialist – be it a plumber, electrician, or roofer, the home inspector will recommend you have that system or condition evaluated and/or repaired by the specialist.

For example if the home inspector finds that there is a problem with an electrical outlet then he or she will refer you to a specialist, in this case an electrician, who will further evaluate why the outlet is improper and repair it.  This is the essence of a home inspection.

To oversimplify, if you want to know the value of your home – get a professional appraisal.  If you want to know the condition of the home – get a professional home inspection.

© 2005 Martin D. Lehman, Solid Foundation Home Inspections