Inspection Vs. Appraisal

What is the difference between an inspection and an appraisal?

An appraisal is an evaluation of the homes market value that is usually done for a lender so they can determine how much they can loan a buyer on the property.  Home appraisals are usually done by a brief overview of the property and a comparison to the selling prices of similar properties in the are.

A home inspector does a thorough evaluation of the house and it's major systems in order to provide you "the buyer" with a list of items that need attention, replacement, or repair.  Most of these items should be dealt with and repaired before closing and identifying them before closing can save you lots of future headaches and thousands of dollars.

The U.S. Department Of Housing And Urban Development (HUD) requires buyers sign a Consumer Notice advising them to get a house inspection in addition to a house appraisal before purchasing a house with a FHA mortgage. Additionally, HUD now allows homebuyers to include the costs of appraisal and inspection in their FHA mortgage.