Published on Sep 09, 2025
Welcome to another Q&A session where I answer questions from you all on the internet.
Today's question is:
I keep on hearing that a lot of people don't know what the difference is between an inspection and an appraisal.
So, an inspection really is for your benefit. So, the benefit is, is that you want to find out what's wrong with the house, if there's anything wrong with the house. Now, an inspector is not gonna tell you what's good with the house. They're gonna tell you what's wrong with the house to know if it's a deal breaker or not.
So, you want to make sure that you, um, get an inspection. It is optional. The bank doesn't really, um, care to see an inspection unless you're doing down payment assistance, but it is a really good thing for you to have. It can work as negotiating power, and it also can tell you whether it'd be something that you want to invest in one of the largest investments that you're gonna be doing.
An appraisal, on the other hand, is something that's required by the bank. So, the bank is gonna require you pay for an appraisal, and that appraisal will basically cover that, that the house is livable and that the house is, um, value or higher, which is great if you get it higher. But the biggest thing is you want to make sure that, that when you... a seller is saying, "I wanna sell my house," and they have an XYZ number, that it actually comes back to that XYZ number, and you're not buying it for, uh, something for more than it's actually worth... less.
So, if you have any questions, get back to us. We'd be glad to help you.
One of the most common questions we hear from buyers in Everett is, “What’s the difference between an inspection and an appraisal?” And honestly, it’s easy to get them mixed up. Both happen during the homebuying process, both involve professionals evaluating the property, and both can affect whether you move forward with the purchase. But here’s the truth—they serve completely different purposes, and knowing the difference can save you money, stress, and maybe even keep you from making a costly mistake.
A home inspection is for your benefit as the buyer. Think of it as hiring someone to put the house under a microscope and tell you what’s wrong. Inspectors aren’t there to compliment the kitchen backsplash or gush over the new roof—they’re laser-focused on issues, big or small.
Inspections are optional from the bank’s point of view. Lenders don’t typically require them (unless you’re using certain down payment assistance programs), but skipping one is like skipping a test drive before buying a car. The inspection can reveal deal breakers, hidden problems, or negotiating points. For example, if the inspector finds plumbing issues or an aging furnace, you might be able to ask the seller for repairs or a price reduction.
In short, an inspection is your chance to make sure you know what you’re getting into before you sign on the dotted line.
An appraisal, on the other hand, is for the lender’s protection. If you’re borrowing money to buy the home, the bank wants to make sure the property is worth the price you’ve agreed to pay. An appraisal confirms the house is livable and assesses its market value.
If the seller lists their home for, say, $500,000, but the appraisal comes back at $475,000, the bank won’t lend based on the inflated asking price. This protects you, too—you don’t want to pay more than the home is worth. In some cases, if the appraisal comes back higher than expected, it can be a bonus, giving you instant equity in your purchase.
Unlike inspections, appraisals are not optional—you’ll have to pay for one as part of your loan process.
While inspections and appraisals serve different purposes, both are valuable parts of the homebuying journey in Everett. The inspection helps you decide if the home is a good investment, while the appraisal ensures the bank agrees with the value. Together, they provide a clearer picture of both the condition and the worth of the property.
If you’re buying a home in Everett, don’t skip the inspection just because it’s optional, and don’t be surprised when the appraisal bill comes your way—it’s required. One protects your decision, the other protects your financing. And if you’re still unsure, give us a call at Home Right Lending. We’ll walk you through the process and help you understand how each step works to your advantage.
Home inspections protect buyers, while appraisals protect lenders. In Everett, know the difference to make smart homebuying decisions.