What’s the Difference Between an Appraisal and a Home Inspection?
If you’re getting ready to sell, refinance, or buy a home, you’ve probably heard the terms “appraisal” and “home inspection.” Many homeowners assume they’re the same — both involve someone coming to the property and evaluating it, right?
Not quite. While both are important steps in the process, they serve very different purposes. Here’s what every San Antonio homeowner should know about the difference between an appraisal and a home inspection.
🏠 Purpose: Value vs. Condition
An appraisal determines your home’s value.
A home inspection evaluates your home’s condition.
An appraiser’s goal is to develop an objective, professional opinion of value based on the property’s features, location, and recent comparable sales.
An inspector’s goal is to identify defects or safety concerns — things like roof damage, foundation issues, plumbing leaks, or electrical hazards.
So, while an appraisal answers “What is it worth?”
An inspection answers “What’s wrong with it?”
📊 Who Orders Each
Appraisal: Usually ordered by a lender (if there’s a mortgage involved) or directly by a homeowner for pre-listing, estate, or private sale purposes.
Inspection: Typically ordered by the buyer during the option period to uncover any repairs before finalizing the sale.
If you’re selling privately or planning to list your home soon, you might order a pre-listing appraisal for value guidance — but it’s still smart for buyers to have an inspection for peace of mind.
🧾 What’s Included
An Appraisal Report Includes:
A detailed description of your property (size, layout, features)
Adjustments for upgrades or condition differences
Recent comparable sales in your neighborhood
Market trends and area data
A final opinion of value
An Inspection Report Includes:
A checklist of items inspected (roof, HVAC, plumbing, foundation, etc.)
Notes on condition and functionality
Photos of any problem areas
Recommendations for repairs or further evaluation
💡 Why You Need Both
While lenders require appraisals for financing, both reports play an important role in protecting your investment.
The inspection helps identify issues that could affect your safety or cost you money down the road.
The appraisal ensures you’re not overpaying (or underselling) based on market data.
Together, they give a more complete picture of your home — its true market value and its current condition.
🕒 Timing Matters
It’s also important to note that an appraisal is a snapshot in time — its opinion of value is technically valid only on the day it’s completed. For the most accurate results, homeowners should schedule their appraisal as close as possible to when they plan to sell or refinance.
By contrast, a home inspection remains useful until significant repairs or changes occur.
✅ Final Thoughts
Both appraisals and home inspections serve crucial but different roles in the real estate process. The inspection protects your safety and investment by identifying problems. The appraisal protects your financial decision by confirming fair market value.
At Colby Dunagan Appraisals, we specialize in providing clear, unbiased opinions of value for homeowners across San Antonio — whether you’re preparing to list your home, planning a private sale, or simply want an updated understanding of your property’s worth.
👉 Have questions about which type of evaluation you need? Contact us today. And if you decide a full appraisal isn’t necessary, Brandi Dunagan — Certified Residential Appraiser and licensed Realtor® — can prepare a detailed market analysis to help you price your home strategically.