Learn the Difference Between a Home Inspection and Home Appraisal

Texas Landsource is here to help you learn the difference between a home inspection and home appraisal. Let our decades of Texas real estate help you with your home and land needs.

Texas Landsource may be well known for hunting land for sale in East Texas, but did you know Landsource also has listings for homes for sale in Texas?

Texas Landsource if here to help selling your home just as much as selling your Texas land. 

Always check with Texas Landsource before you start a home improvement project and see if Landsource has a vetted contractor in your area. 

Let Texas Landsource do the leg work for you vetted your contractor. 


When putting a home on the market, much work goes into it. You know how lengthy and expensive this process is if you have already been through it.

You want to make a good first impression, just like a job interview or first date. It is necessary to make your home attractive to potential buyers and to make them feel confident about their purchase. Makeovers like painting, carpeting, and appliance repairs are possible.

Realtors provide advice to sellers, and they tend to focus their efforts on pleasing the buyer. Home inspectors and home appraisers are both equally important – both are professionals.

Home inspection and appraisal results are extremely important in determining the final sale price. Nevertheless, many homeowners do not know the difference between them.

Despite their similarity in purpose and process, there are subtle differences between a home inspection and a home appraisal.

The Basics

During a home inspection and appraisal, the inside and outside of the house are evaluated. Inspections and appraisals conducted by certified professionals determine the property’s current condition. Inspection is concerned with function, while an appraisal is concerned with value.

While these processes are similar, both must be performed before a home can be sold. An appraisal cannot replace a home inspection, according to Realtor.com. Appraisers provide lenders with an opinion of a property’s value, while inspectors examine the condition of the house, keeping an eye out for both existing and future problems.”

The inspector and appraiser are concerned with major features such as: Even though a home contains endless minute details, the inspectors and appraisers concentrate on the following features:

  • Foundation, walls, exterior structures  
  • Roof, windows  
  • Heating and air conditioning  
  • Plumbing
  • Electrical
  • Kitchen and baths
  • Major appliances

Inspection Details

The International Association of Home Inspectors defines inspections of residential properties as non-invasive visual examinations of accessible areas on a property that are performed for a fee and aimed at identifying specific problems. Some defects are detected to save money on repairs and for health and safety reasons. Examples include faulty electrical wiring or collapsing foundations.

Inspections are the first step to ensuring the home is sound, says Susan Borelli, a Washington Metro area realtor for RE/MAX Gateway. During the home inspection, the purchasers are educated on what expenses they need to make. If the home inspector finds unexpected or requires high-cost repairs, they can ask for repairs or void the agreement.

The home inspection reveals to the seller which repairs are necessary before the sale proceeds. Smaller repairs may be negotiable, while larger repairs may be mandatory.

According to Borelli, we always look to the future when it comes to home inspections. A certain price is being paid for the home right now, but you should plan for what expenses may occur in the near future.

It is important to note that the inspector is an independent party and does not represent either the buyer or the seller. Inspectors have the expertise and training to take a closer look at things from a different perspective, Borelli says. Borelli says buyers, especially first-time home buyers, don’t always know what they want.

Appraisal Details

Licensed appraisers estimate the value of a home by comparing recent sales of homes in the neighborhood against a comparable recent sale. To ensure the value of the home exceeds the loan amount, the appraisal price will be compared to the final sale price by the lender’s underwriter.

Along with the features of the home, external factors, such as the size of the lot and its proximity to desirable schools, are also taken into account.

The buyer and seller have the opportunity to negotiate repairs during home inspections, and the details of the sale can be discussed during home appraisals.

It is possible to make up any difference between the final sale price and the appraised value by renegotiating the sale price or by increasing the down payment.

A real estate website explains that an appraisal is beneficial for both parties, but the appraiser’s primary goal is to safeguard the lender. The lender does not want to own overpriced properties, which is why the appraisal must occur before the loan is approved.

Texas Landsource wants to bring you information like this about your home for sale in Texas. 

But, if you have a project like a new roof, reach out to Texas Landsource and use one of our vetted roofers like Post Oak Roofing in Dallas Fort Worth and East Texas areas.