Inspection vs. Appraisal - What you need to know

Have you ever wondered about the difference between a property appraisal and an inspection?

An appraisal is a formal assessment of the value of a home or property. The lender often requires an appraisal to make sure the loan amount doesn't exceed the value of the property being sold.

An inspection, on the other hand, is an assessment of a home's systems and structure, and it's designed to find any hidden problems with the home. The buyer normally makes an inspection a condition of the sale, then pays for the inspector to deliver a full report.

Real estate agents don't formally appraise your property, but rather provide a free comparable market analysis (CMA) which can give you a good idea of what your home is currently worth.