It’s easy to see why buyers get confused about the difference between appraisal and inspection. In both situations, a specialist will visit the home to examine the property. The conclusion they come to will usually affect negotiations. Furthermore, appraisal and inspection assessments are completed for the benefit of the buyer (and the buyer pays for them). However, there is a vast difference between these two things. Before you make an offer on a property or put your house up for sale, you should have a good understanding of these terms and how they will affect you.


Appraisers determine the value of a property. When they perform an appraisal, it’s true that they will factor in the overall condition of the home. However, this is separate from an inspection. Appraisers will also look at specifications such as lot size, the number of bedrooms and bathrooms, upgraded appliances, and the location of the property itself. Is your home close to schools, shopping centers, major highways and entertainment venues? Is the crime rate low? How are other similar properties priced in your area?

This process benefits the buyer because if a home appraises for less than its market price, they may be able to negotiate for a lower cost. If a contingency is included in the contract, they can also use a low appraisal as a reason to cancel their offer. In some cases, a seller may choose to have an appraisal performed before putting their home on the market to avoid this problem.


Home inspectors focus solely on the condition of the home. Their biggest concern is letting the buyer know what is going on “under the hood,” so to speak. They will make a thorough examination of things like the property’s roof, foundation, insulation, heating and air conditioning systems, ceilings, electrical systems and more. After the inspection, they will present a report that details what needs to be repaired or replaced.

From that point, the buyer can choose to ask the seller to perform and pay for this maintenance. If there are considerable repairs to make, they could also negotiate a lower price and complete any maintenance tasks after moving in. If a seller refuses to make the repairs on their own time or the required maintenance is simply too great, the buyers could also cancel their contract after the inspection. Although this can be inconvenient for the sellers, it’s always beneficial to know what issues (or potential problems) are present in the home.

Both an appraisal and inspection can be anxiety-inducing at times. In most cases, once as these two assessments are complete, it’s usually smooth sailing from that point on. If you’re ready to buy a new home, or if you have any questions about appraisal and inspection, the experts at Golden Lenders can help answer your questions. Contact us to get started!

How Golden Lenders Can Help

Golden Lenders helps home buyers in Colorado, Florida, California understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Need more info about appraisal and inspection? Call us! Our number is (303) 482-2361, or you can send us a message.