| Appraisal | Home inspection | |
|---|---|---|
| Question it answers | What is the home worth? | What condition is it in? |
| Who orders it | The lender | You, the buyer |
| Required? | Yes, for most loans | Optional, but strongly recommended |
| What you get | A value based on recent nearby sales | A detailed report on roof, plumbing, electrical, foundation and more |
Why the appraisal matters
The loan amount is based on the price or the appraised value, whichever is lower. If the appraisal comes in low, you may renegotiate with the seller, bring more cash, or choose a different loan.
Why the inspection matters
An inspection can uncover repairs you'd want to know about before you commit. It can also help you ask the seller for repairs or a credit.
Frequently asked questions
Can I skip the inspection?
You can, but we don't recommend it. It's your best look at the home's condition before you buy.
What if the appraisal is low?
Call us. We'll walk through your options together.