The Difference Between an Inspection and an Appraisal

When you decide to buy your first home, you'll encounter many unfamiliar terms and conditions. While you might have a general idea of what an inspection is, you might not know why it's necessary or how it differs from an appraisal. Here's a simple explanation of each and their importance to you as a homebuyer:

Home Inspection Once you’re under contract on a home, getting an inspection is essential. It gives you a clear understanding of the home's safety and overall condition, which is crucial for such a significant purchase. As Realtor.com explains, an inspection protects your financial interest in what is likely the largest purchase of your life. If any issues arise during the inspection, like the age of the roof or the state of the HVAC system, you can negotiate repairs or adjustments with the seller before finalizing the deal. Your real estate agent will advocate for you and handle these negotiations.

Home Appraisal While an inspection tells you about the house's condition, an appraisal provides its value. According to Bankrate, an appraisal ensures the sale price aligns with the fair market value, protecting you from overpaying and preventing the mortgage lender from lending more than the home is worth. If there's a discrepancy between the appraisal and the agreed-upon price, your real estate professional will help navigate any additional negotiations.

Bottom Line Inspections and appraisals are different but equally crucial steps in the home-buying process. Connect with an agent today for expert guidance from start to finish.

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 Lainey Jones - REALTOR®
 Great Life RE / Real Broker
 (865) 356-5003
 (844) 591-7325

 Eleanor Cippel - REALTOR®
 Great Life RE / Real Broker
 (865) 712-3656
 (844) 591-7325

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