Fact or Myth: If I Have an Appraisal, I Don’t Need an Inspection

Fact or Myth: If I Have an Appraisal, I Don’t Need an Inspection


Home inspections and home appraisals are NOT the same.

A comprehensive appraisal may seem at first glance to cover all of the items in a home inspection, but the function of the two is completely different, and the professionals conducting both are considering completely different things.

The American Society of Home Inspectors had done a survey and found that over 20% of homebuyers were under the impression that they had a house inspection covered when in fact all they had was an appraisal.

The purpose of a home appraisal is to determine the value of the property for the mortgage lender.

A home appraiser looks at things such as the size of the property – both the house and the lot – and the overall condition of both the interior and the exterior. They also consider if any improvements or additions have been included.

Home appraisers will use market data of the most similar homes that have recently sold nearby your home. Then they will look at upgrades, updates, additions that have been made, and use all of this type of data to determine the value of the property.

A home appraiser does not determine the functionality of any system of the home. While if they can see something with their naked eye – such as crumbling foundation or large holes in the roof – that would likely negatively impact the valuation they place on your home.

A home inspector, however, checks all of the major systems of your home, such as the exterior (roof, walls, foundation), plumbing, electrical, appliances and HVAC. The job of the home inspector is to check on the safety of the home and identify potential issues so that the home buyer can feel confident in making the best decision about the home they plan to purchase.

Most people purchasing a home will need both an appraisal (which is often required by the mortgage lender) and a home inspection.

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