What's the difference between an inspection and an appraisal?

Home Inspection:

Conducted by a home inspector, this process evaluates the overall condition of the home, including mechanical systems like the roof, foundation, HVAC, plumbing, and electrical systems.

Buyer's Role in Inspection:

The buyer selects and pays the inspector directly. The inspection report, which details the condition of the home, is provided to the buyer and their real estate agent.

Home Appraisal:

Performed by a third-party appraiser hired by the mortgage company, the appraisal assesses the home's value. The appraiser measures the home's square footage, examines improvements and updates, and considers the value of similar recently sold homes.

Buyer's Role in Appraisal:

The buyer pays for the appraisal through the lender, but does not choose the appraisal company. The buyer and their agent typically do not attend the appraisal. The report is sent directly to the mortgage company.

Purpose:

The inspection is aimed at informing the buyer about the home's condition, while the appraisal ensures for the lender that the home is worth the money being lent for its purchase.