What’s the Difference Between a Home Inspection and a Home Appraisal?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. A Home Inspection Checks the Condition of the Property
A home inspection is your opportunity to dig into the physical condition of the home—and spot any costly issues before you buy. A licensed inspector will review things like:
- The roof, foundation, plumbing, and electrical systems
- Heating/cooling systems and appliances
- Visible signs of damage, leaks, or safety concerns
The inspection report helps you decide whether to:
Move forward
Negotiate repairs or credits
Walk away from a money pit
It’s optional, but highly recommended.
If the inspection reveals needed repairs, you might need renovation financing. Calculate your FHA 203K Renovation Purchase Loan Payment now to see how you can finance both the purchase and necessary repairs identified during inspection—all in one loan.
2. A Home Appraisal Determines the Market Value of the Property
A home appraisal is ordered by your lender, not you. It ensures that the price you’re paying aligns with what the home is actually worth—based on recent sales of similar properties. The appraiser is focused on:
- Square footage
- Location
- Condition
- Comparable home sales
If the appraisal comes in low, you may need to renegotiate the price or bring more cash to closing. This protects the lender from over-lending and helps you avoid overpaying.
Want to prepare for your appraisal with realistic expectations? Get a Free Home Evaluation to see what comparable homes are actually selling for and understand whether your offer price aligns with current market values.
3. Both Are Critical—One Protects You, the Other Protects the Bank
Think of it this way:
The inspection tells you if the home is a good investment physically
The appraisal tells you if it’s a good investment financiallyYou want both. Skipping either one could lead to major surprises down the road—and not the good kind.
Need help finding trusted inspectors and appraisers? Get An Introduction to vetted professionals who will thoroughly evaluate your potential home and protect your investment.
Ready to understand your complete purchase costs? Calculate your Conventional Purchase Loan Payment now to see how inspection and appraisal fees factor into your closing costs and overall homebuying budget.
Want Help Navigating Inspections and Appraisals Like a Pro?
At Stairway Mortgage, we help you buy wisely—so you get the right home at the right price with zero regrets.
📘 Download our homebuyer guides about inspections and appraisals.
🏠 Get a Free Home Evaluation before your appraisal.
🤝 Get An Introduction to qualified inspectors.
📊 Check Current Rates and plan your budget.
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