What’s the difference between an appraisal and an inspection?
An appraisal is intended to assess the value of a home based on the value of comparable homes in the neighborhood to establish the value of the collateral that will secure the mortgage loan if approved. All lenders and mortgage insurers require an appraisal to confirm that the home and the value of the home meet their requirements. While an appraisal usually involves a visual inspection of the home, a home inspection involves a more detailed and specific assessment of the condition of all elements of a home, from structural elements to plumbing, heating and air conditioning. A home inspection is intended to ensure that a homebuyer is thoroughly informed as to the condition of the home prior to purchase.
