Many people wonder about the difference between a property appraisal and an inspection, and how each is used during the home buying process.
An appraisal is a formal assessment of the value of a home or property. When you are seeking financing, the lender usually requires an appraisal to ascertain the value of the property in order to make sure the loan amount does not exceed the value of the property being sold.
An inspection is an assessment of the systems and structural integrity of the property. It's normally ordered and paid for by the buyer at the time of inspection to find any hidden problems with the property. An inspection is often written into the Purchase and Sale Agreement as a condition of the sale.