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For Home Buyers • January 14, 2023

Home Inspection vs Appraisal

by Kat Ashby

When buying a home, it is important to understand the difference between a home inspection and an appraisal. Both are important steps in the home buying process, but they serve different purposes and provide different information.

A home inspection is a thorough examination of a home by a licensed inspector. The inspector will check for any potential issues with the home, such as structural damage, electrical or plumbing problems, and any other concerns that may affect the safety or livability of the home. According to the National Association of Home Inspectors, the average cost of a home inspection is between $300 and $500.

An appraisal, on the other hand, is an assessment of the value of a home. An appraiser will examine the home and compare it to similar homes in the area to determine its value. Appraisals are typically required by mortgage lenders as a condition of funding a loan. According to the Appraisal Institute, the average cost of an appraisal is around $450.

While both home inspections and appraisals are important steps in the home buying process, they serve different purposes. A home inspection is designed to identify any potential issues with the home, while an appraisal is designed to determine the value of the home.

One of the benefits of a home inspection is that it can help you identify any potential issues with the home before you make an offer. This can save you money in the long run by allowing you to negotiate for repairs or a lower price. Additionally, a home inspection can give you peace of mind by ensuring that the home you are buying is safe and livable.

In conclusion, it’s important to understand the difference between a home inspection and an appraisal when buying a home. A home inspection can help you identify any potential issues with the home, while an appraisal is used to determine the value of the home. Both are important steps in the home buying process and can save you money and give you peace of mind.

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