Appraisal vs. Inspection

What's the difference between an appraisal and an inspection?

An appraisal is when someone goes out to your property and compares it with other "comparable" properties that have recently sold.  Their aim is to find homes that are close in distance to yours to make their appraisal (or opinion of value) that much more accurate.  When you are buying a home, you have the legal right to receive that appraisal, no matter what.  You will probably not be present though at the actual appraisal.  
The appraiser won't be trying to find flaws with the property.  He/She will just be looking for things that affect the home's worth and the livability of the property (i.e. if the heat does not work).  They won't be concerned with a chipped tile, etc.  For example, if a 3-bedroom raised ranch home recently sold for $10,000 more than 2-bedroom raised ranch home in the same neighborhood, and your home is a 4-bedroom raised ranch home, that'll help them determine the value of your home, having that extra bedroom. 

An inspection though is where you, the home inspector, and usually your Realtor go through your home and check every last inch of the home.  The inspector should be explaining anything of interest that comes up.  Some things might be rotted wood, drainage problems, clogged gutters, or even foundation issues.  The inspector should be giving you an inspection packet that day, when he/she finishes the inspection.  I call that the "to-do" list when you get into the home.  The mortgage company will never want to see the inspection, only the appraisal.

I hope this helps clear up the difference between the two.  Do you have any questions about the other differences?

Keith Turner
860-444-0650
KeithT@mccuemortgage.com