The difference between Home inspection and Home appraisal

When purchasing a home, buyers may receive two property-related reports to consider—a home inspection and a home appraisal. These reports serve completely different purposes, and one is optional and one is required.

HOME INSPECTION

• Determines the condition of the property and its systems in great detail.
• Ordered by the buyer and his/her real estate agent with an inspector of their choosing shortly after the buyer’s offer is accepted.
• Report is generally delivered to the buyer within 24 hours from the time the inspection is completed.

HOME APPRAISAL

• Determines the fair market value and the general physical condition of the property being purchased.
• Required when a home purchase is being financed.
• Typically ordered after the home inspection is completed (if the buyer chooses to do a home inspection) and is randomly assigned to an appraiser per government regulations.
• Report is delivered within 5–7 business days from the time the appraisal is ordered.