The Home Inspection Vs. The Appraisal

A home is one of the biggest and most important purchases most people will make in their lifetime. So would it not make sense to learn as much as you can about the property, before signing? At a first glance you might think an appraisal and a home inspection are the same, however; there are important differences between them, and you as a home buyer should know what they are.

The home inspection

Home inspections are an assessment of the physical condition of a property. They are not used to determine a property’s value. A home inspector will write a comprehensive report determining a building’s condition. Some, but not all, aspects of a home inspection include:


The appraisal

Your lender will require an appraisal to determine if the property being purchased is suitable for security on a loan. They need to know the property will sell for at least the amount they are lending. While a CMA (Comparative Market Evaluation) is used by Real estate agents to help a home owner determine market value, the only report a bank will consider for lending is a detailed appraisal. Some, but not all, aspects of an appraisal include:

  • Property Details, 3 Comparable Properties.
  • Evaluation of Current Market
  • Issues Harmful to Value
  • Flawed Characteristics
  • Estimated Sales Time
  • Type of Area (Development, Acreage, etc)


The appraisal report will give lenders enough information to make a decision on approving or declining the proposed mortgage. The home inspection report will give potential home buyers enough information about the property’s condition in making a decision to move forward with the purchase or back down. A good home inspector will point out areas that are problematic, and cost of repairs if necessary.

Kelsey Ozeroff with Century 21 Mountainview Realty Ltd.

Kelsey Ozeroff

Kelsey Ozeroff

CENTURY 21 Mountainview Realty Ltd.
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