Here’s something you may not know: A home inspection is not the same thing as a home appraisal. This is not a “you say tomayto, I say tomahto” kind of a thing — they really are two distinct things with two different purposes. Both are critical to the home-buying process.

Home Inspection

The home inspection is to determine the working order of the property and make sure that it’s in good condition. Home inspections will help identify potential issues in everything from the electrical system to the roofing to the foundation. Inspectors can also make suggestions on items that need to be repaired now and those that can be deferred until later. Their reports help buyers negotiate knowledgeably with sellers.

Home Appraisal

The sole purpose of a home appraisal is to determine the value of the property and ensure it’s worth at least what you’re paying for it.

An appraiser will look at the condition of the home, the quality of construction, the size of the home, its layout, and any amenities or special features that may add to its value. They’ll examine things that may detract from its value as well. They’ll look at the features and usability of the lot the home is on.

The key is that they then compare the property to similar homes in the neighborhood that have been recently sold. They’ll take into account the sale prices of those homes, and use that data to determine the current value of the home you want to buy.

If you have questions about home inspections, home appraisals, the loan process, or anything else to do with home financing, reach out to us. You can call 205–986–4220, connect with us on social media, or ping our website. We are happy to help you in any way we can.

— Ben Chenault,
Certified Mortgage Planner
NMLS# 130305
MortgageBanc / Fairway Nmls# 2289

Copyright©2019 Fairway Independent Mortgage Corporation doing business as MortgageBanc. NMLS#2289.4750 S. Biltmore Lane, Madison, WI 53718, 1–866–912–4800. All rights reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Lender. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, License No 41DBO-78367. Licensed by the Department of Business Oversight under the California Finance Lenders Law, NMLS #2289. Loans made or arranged pursuant to a California Residential Mortgage Lending Act License. Georgia Residential Mortgage Licensee #21158. Licensed Nevada Mortgage Lender.

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