Appraisal Versus Inspection

Dealing with inspections and appraisals is part of the process when getting ready to sell your home. Many people think that those two tie hand in hand and are essentially the same thing but there are key differences. Each property is unique and the appraiser relies on his or her expertise and research to arrive at an opinion of value.

The Appraisal Process:

Appraisers use a variety of factors in making their decision on what the home is worth. They weigh the location of the home, how close it is to desirable facilities, size of the lot, and the condition of the home itself. They also look around to see prices of comparable properties. They are not concerned as to whether the home is clean but they will notice the neglect such as cracks in the walls, broken windows, damaged floor, etc.
In order to become a licensed appraiser you must go through several courses, pass a test and complete 2,000 hours of supervised work. If a home receives an appraisal lower than what the home is listed for there are some ways the purchase can still go through. The seller can reduce the price or the buyer could make a bigger down payment. Each situation is different though and there is not a solution every one.


Difference From An Inspection:
Here is where the difference comes in. An appraisal can not be substituted for a professional home inspection as they are not the same thing. The appraiser makes an opinion of the property's value for the lender, while the inspector simply educates the buyer about the condition of the home. The appraiser mainly focuses on the value of the home and the inspector looks into both existing and future problems.

Overall, the two are not the same thing so you cannot pick one or the other. You will need both!

Information provided by realtor.com