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Home Appraisal vs. Inspection – What’s the Big Difference?

Home Inspection vs. Home AppraisalChecklist

When purchasing a new home, an appraisal and an inspection will be performed before you are able to close and call it your own. You may be wondering what the difference is and why either needs to be performed.


  • Performed by a licensed appraiser that is hired by the bank you are securing your loan through.
  • Will assess the current value of the home based on a variety of factors, including: square footage, amenities, and values of recently sold homes in the neighborhood or area.
  • It is used to find the value of the property in order to be sure it does not exceed the desired loan amount.


  • Performed by a licensed home inspector, typically hired by the buyer.
  • Will assess the current condition of the property, including structural and system issues, and uncover any problems not immediately visible.
  • A well and septic, radon, and/or pest inspection may be performed at this time as well.
  • It is typically written into a real estate purchase agreement as a condition of the sale.

Having been in the real estate business for more than two decades, The Bouma Group has worked with most of the local inspectors and bank appraisers. We can help find the best fit for you, so contact us at or 734-761-3060 for a list of our preferred partners or if you have any questions about the home sale process!


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