The Difference Between an Inspection and an Appraisal

When you decide to buy your first home, you may come across a number of terms and conditions you’re not familiar with. While you may have a general idea of what an inspection is, maybe you’re not sure why you need one or how it’s different from an appraisal. To keep it simple, here’s an explainer of each one and what they mean for you as a homebuyer.

Home Inspection

Once you’re under contract on a home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear idea of the safety and overall condition of the home – which is important for such a big transaction. As a recent Realtor.com article explains:

A home inspection is something that protects your financial interest in what will likely be the largest purchase you make in your life—one in which you need as much information as possible.”

If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. And don’t worry – you don’t have to go through that process alone. Your real estate agent will be your advocate and negotiate with the seller for you.

Home Appraisal

While the inspection tells you about the current state of the house, an appraisal gives you its value. Bankrate explains:

“When buying or selling a home, an appraisal verifies that the sale price of the home is in line with fair market value. This ensures the homebuyer doesn’t pay more than the home is worth, and the mortgage lender doesn’t lend more than it is worth.”

Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.

And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted real estate professional will help you navigate any additional negotiations to try to close the gap.

Bottom Line

The inspection and the appraisal are different but equally important steps when buying a home – and you don’t need to manage them by yourself. Let’s connect today so you have expert guidance from start to finish.

73 Properties
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17594 Vellum CIRCLE Punta Gorda,  FL 33955
$549,900
Neighborhood: Punta Gorda Isles Sec 21
3
Beds
2F21/2
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2,223
Sq.Ft.
2023
Year Built
6
Days on Site
C7494811
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$974,900
Neighborhood: South Bayview Estates
3
Beds
2F11/2
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2,699
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2002
Year Built
8
Days on Site
C7495222
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$2,100,000
Neighborhood: Venezia Park Rep
4
Beds
4
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4,570
Sq.Ft.
1958
Year Built
8
Days on Site
N6133767
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$529,900
Neighborhood: Port Charlotte Sub 22
4
Beds
3
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2,549
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1995
Year Built
9
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$525,000
Neighborhood: Hrbr Heights
2
Beds
2
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1,156
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1977
Year Built
10
Days on Site
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1583 Hyssop LOOP North Port,  FL 34289
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Neighborhood: Cypress Falls
3
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2
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2019
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13
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$520,000
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4
Beds
3
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2,025
Sq.Ft.
2014
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16
Days on Site
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Year Built
16
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3
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Year Built
17
Days on Site
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3
Beds
2
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2,180
Sq.Ft.
2014
Year Built
18
Days on Site
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2,513
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Open 7/20
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3
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1990
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29
Days on Site
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