Difference Between a Home Appraisal and a Home Inspection

Many homeowners get confused between a home appraisal and a home inspection. Both of them involve a person or a team visiting a property and assessing it. That’s seems to be the reason why many people mistook them to be the same thing. However, both of them are different things and serve different purposes. We will talk about both of them in this blog and uncover the differences.

While a home inspection is mainly conducted while buying a home, an appraisal can be needed for various reasons. Having being providing home appraisal services in Chicago for over a decade, we have seen all the different reasons homeowners may need appraisals for. We’ve also seen, during our time in the industry, many homeowners using these terms interchangeably. For that reason, we wanted to write a blog clarifying the differences.

What is a Home Appraisal?

A home appraisal is supposed to determine the fair market value of your home. A licensed appraiser will visit your home and thoroughly survey everything. They will then evaluate its value based on the property’s condition, size, location, and comparable homes (recently sold) in the area.

An appraisal is most commonly needed during the mortgage approval process. It ensures the property is worth the loan amount requested by the buyer. There are several other cases when a home appraisal can be needed. 

Some of the common reasons are:

• Divorce: The court may require a home appraisal for asset division.
• Bankruptcy: While liquidating or reorganizing the assets, the debtor may need to provide a appraisal to prove the value of their home
• Financial Planning: An appraisal provides an accurate valuation of the home, helping the financial planner to plan more accurately.

Typically, the process for obtaining a home appraisal lasts between 5-15 days.

What is a Home Inspection?

A home inspection is a thorough examination of a home’s condition conducted by a licensed home inspector. It’s purpose is to identify any defects or potential repairs needed in the home. It mainly serves the buyer make informed decisions about the property.

The inspector, sometimes with a team, evaluates the home’s structure and overall condition. They will also examine the electrical, plumbing, and HVAC systems. They then provide a detailed report to the buyer.

Although home inspection are most commonly needed while buying a property, homeowners may also get their homes inspected for other reasons such as: before selling it address any issues before listing it, for routine maintenance while living at the property, after any natural disasters or accidents to assess any damage, etc.

Conclusion

We hope this blog helped to remove any doubts you had about this topic. Both home appraisals and home inspections are important during real estate transactions. They both serve different purposes and do not replace each other.

AnDel Appraisal is a licensed home appraisal company in Chicago. If you are looking to get you home appraised, feel free to reach out to us!