What to expect during home inspections and appraisals
Home inspections focus on a property’s condition, while appraisals determine its market value. Both are critical in real estate transactions, helping buyers make informed decisions and lenders confirm loan security.
Buying a home is one of the biggest financial decisions you’ll ever make, and two key steps—the home inspection and the appraisal—can make or break the process. While both are designed to protect buyers and lenders, they serve very different purposes. Understanding what to expect can help you prepare, avoid surprises, and move closer to closing with confidence.
What is a Home Inspection?
A home inspection is an in-depth assessment of the property’s condition, typically arranged by the buyer. A licensed inspector examines the home’s structure, systems, and safety features.
What Inspectors Look At
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Roof, gutters, and attic condition
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Foundation, basement, and overall structural stability
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Plumbing, water heater, and sewer lines
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Electrical systems and outlets
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HVAC systems (heating, ventilation, air conditioning)
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Windows, doors, and insulation
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Appliances included in the sale
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Signs of pests, mold, or water damage
Why Home Inspections Matter
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Identify costly issues before finalizing the purchase
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Provide negotiation leverage—buyers often request repairs or credits
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Give peace of mind about long-term maintenance
Tip: Attend the inspection if possible. You’ll learn valuable details about the property and have the chance to ask questions directly.
What is an Appraisal?
An appraisal is an unbiased estimate of a home’s fair market value, usually required by mortgage lenders. Unlike an inspection, which evaluates condition, an appraisal evaluates price based on market data.
How Appraisals Work
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A licensed appraiser visits the property to note its size, layout, and condition
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They compare the home to recently sold, similar properties in the neighborhood ("comps")
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Adjustments are made for upgrades (renovated kitchen, new roof) or deficiencies (dated bathrooms, needed repairs)
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The goal: ensure the loan amount doesn’t exceed the home’s actual value
Why Appraisals Matter
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Protect buyers from overpaying
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Protect lenders from financing more than the home is worth
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Impact negotiations if appraisal comes in below the agreed purchase price
Common Scenario: If an appraisal is lower than the purchase price, you may renegotiate with the seller, pay the difference out of pocket, or walk away depending on your financing terms.
Inspection vs. Appraisal: Key Differences
| Feature | Home Inspection | Appraisal |
|---|---|---|
| Who orders it | Buyer | Lender |
| Purpose | Assess condition, uncover repair needs | Determine fair market value |
| Focus areas | Structural, mechanical, safety issues | Market data, size, features |
| Impact on deal | Negotiations for repairs or credits | Loan approval and purchase price |
| Optional or required | Optional (but strongly recommended) | Required by lenders |
How to Prepare as a Buyer
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For inspections: Ensure utilities are on so systems can be tested. Be present to hear feedback firsthand.
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For appraisals: Make sure the property looks clean and well-maintained. Small improvements, like fixing broken fixtures or touching up paint, can positively influence value.
Final Thoughts
Both inspections and appraisals are critical safeguards in the home-buying process. An inspection protects you from unexpected repair bills, while an appraisal ensures you aren’t overpaying. By knowing what to expect, you can approach both steps prepared and confident.
If you’re beginning your home-buying journey and want expert guidance through each stage, including inspections, appraisals, and negotiations, reach out to a trusted local real estate agent to guide you from offer to closing.
