What is the difference between an appraisal and a home inspection?

The correct choice is that an appraisal assesses value, while a home inspection evaluates condition.

An appraisal is a professional evaluation of a property's market value, conducted by a licensed appraiser. It takes into consideration various factors, such as the location, comparable sales in the area, property size, and features. The primary purpose of an appraisal is to determine how much a property is worth, which is particularly important during the buying, selling, or refinancing processes.

In contrast, a home inspection is a thorough examination of the physical condition of a property. It focuses on identifying any issues related to the structure, systems, and overall safety of the home, such as roof condition, plumbing, electrical systems, and potential safety hazards. The goal of a home inspection is to inform the buyer (or owner) about the current state of the property and any repairs that might be necessary.

While other options include aspects that may superficially relate to appraisals and inspections, they do not accurately capture the fundamental distinction between the two processes. Appraisals are concerned with value and market considerations, while home inspections focus on assessing the property’s condition and safety.