How Does a Home Inspection Affect an Appraisal

As the leading home inspection company, Brighton Inspections is here to answer all your home inspection questions. When it comes to selling a home, many homeowners have questions about the appraisal and home inspection processes. Understanding how the home inspection and appraisal are related can be the key to effectively navigating the process and getting the best return on your home sale. The two do have a symbiotic relationship, however: when done properly, the home inspection can help the appraiser establish an accurate value for the home and avoid any major surprises at the appraisal.

A home inspector will not give an opinion on the value of the home; this is solely determined by the appraiser. At its core, a home appraisal is an evaluation of a home’s value. This value is determined by a professional appraiser, who takes a variety of factors into consideration. These factors include the condition of a home’s interior, exterior, neighborhood, and potential for remodeling or repairs. A home inspection looks similarly at these factors, but with a focus on the physical condition. Its focus is not on value, but rather on auditing the condition of the home.

What comes first, home inspections or home appraisals?

In many cases, a home inspection takes place before a home appraisal. A home inspection report provides detailed information on any issues that might need to be addressed before the sale. If major repairs are needed, the inspector will advise if they need to be addressed right away or can be addressed prior to the sale. This can be a great way to catch potential issues before they have a chance to affect the value of the home.

Okay, the home inspection goes first. But does it affect my home’s appraisal?

The home inspection, then, can have an influence on the appraisal process. Generally speaking, the result of a home inspection will not necessarily have a major impact on the appraisal, but major issues can certainly seem up temporarily. For example, if a home inspection reveals that a major repair is needed, the appraiser might deduct that repair before calculating the home’s value. Or, if the inspector notes the need for significant remodeling, the appraiser might take that into account as well.

That said, the result of a thorough home inspection is generally helpful in the appraisal process. The inspector will be able to point out any items that need to be addressed prior to the sale so that the appraiser has an accurate picture of the value of the home. This can make the appraisal more accurate and ensure that homeowners are able to get the full value they are looking for when they put the home on the market.

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