advantage of buying a home

Home inspections and appraisals serve different functions, but both are essential during the home-buying process.

As a first-time home buyer, you want to make sure that you are making the right decision, so we recommend getting both reports to give you the insights you need to avoid significant financial missteps.

Difference between an appraisal and a home inspection

The appraisal determines the value of the home done by a licensed appraiser.

A home inspection is an inspection that determines the condition of the home. 

For example, does the AC work properly, and is the electrical and plumbing working?

Appraisal: An appraisal’s goal is to determine a property’s fair market value. 

  • A licensed appraiser conducts it.
  • An appraisal inspection is required to determine the value when buying a home.
  • The appraisal cost will depend on the area and the home’s size. Typical prices are anywhere from $450 to $800.

Read: What’s the process of a home appraisal?

Home Inspection: A licensed inspector will inspect the condition of the home.

  • The utilities must be turned on so the inspector can test the AC, electrical, garbage disposal, etc…
  • An inspection report will be provided with recommendations of items that should be repaired or replaced.
  • A home inspection costs anywhere from $300 to $700, depending on the location and size of the home.

Do lenders require appraisals?

Yes, when purchasing a home, an appraisal is required.

Why is it required?

Because lenders need to know how much the property is worth to provide financing.

An appraisal ensures you aren’t overpaying for a home, and the lender isn’t financing a home loan for more than the value.

Do lenders require home inspections?

No. It is the buyer’s choice. 

However, if you are buying a house, we recommend getting a home inspection unless you are interested in gutting and replacing everything. 

An inspection can uncover issues that can cost a fortune.

Are you ready to apply? Start the process by completing the form below.

  • Are you looking to buy or refinance a home?
  • What is your price range?
  • Do you currently own a home?
  • What type of property are you buying?
  • When are you planning to make your home purchase?
  • Have you (or your spouse) ever served in the US military?
  • Have you declared bankruptcy in the past 7 years?
  • Is this your first time purchasing a home?
  • What is your current credit score?
  • What is your email address?
  • What is your name?
  • What is your phone number?

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