Appraisals and Inspections – What is the Difference?

As your trusted title company at the Lake of the Ozarks since 1984, we are asked this question a lot by our clients during the process of closing on a house at the Lake of the Ozarks. While appraisals and inspections both involve taking a close look at the home you are buying, they each serve different purposes.  The reason for an appraisal is to determine the value of your home at the Lake of the Ozarks. The purpose behind an inspection is to get a detailed understanding of the condition or quality of the home you are buying. The value of your new home will be important to your lender because they want to know they are not loaning more than the property is worth.  The inspection will be of great interest to you because you want to know there is no major problem with the house that you would consider a dealbreaker.  If you are interested in learning more about how appraisals and home inspections at the Lake of the Ozarks work, keep reading this blog!

Appraisers Look at Value

There are a number of different factors that will affect a home’s appraisal value.  The overall condition of the home is one of those factors, but there are several others as well.  The location of the home and what other comparable properties have sold for will influence appraisal value.  The size of a lot can make a difference and the availability of nearby schools, medical facilities, and other public amenities can have an impact on a home’s value as well.   If the purchase of the home involves an FHA (Federal Housing Administration) mortgage, the appraiser will be required to note the physical condition of the home and report any potential problems. But that will not involve the detailed survey a home inspector will cover, and it will not be done for non-FHA mortgages at all.

Inspectors Look at Condition

During a home inspection, the inspector will first be looking for any potential safety issues such as electrical or foundation problems.  The inspector will also focus on major systems or components to the home like the roof, HVAC and plumbing. The inspector will also look at major appliances and ensure that they are working properly.  If there are issues with age and wear or any major problems that will potentially need repair, those things will be included in the home inspection report. The inspector may access the crawl space or the attic to get a better look at things like foundation or ductwork.  The more access the inspector has to these spaces the better.  In fact, it is even a great idea for the seller to have an inspection done prior to putting the home on the market to take care of any of these issues proactively to facilitate a smoother closing process.

Finding Answers to your Questions

At Arrowhead Title, we are big believers in communicating with our clients and keeping them informed so they can make a fully educated decision.  When it comes to appraisals and inspections, we consider them both essential in the process of buying a home at the Lake of the Ozarks. If you have any questions about the real estate closing process at the Lake of the Ozarks, consider us a resource.  We love helping people attain their dream of owning a home at the lake and we are happy to help you, too! For more news and information on real estate at the Lake of the Ozarks, feel free to follow us on our social media channels listed below!


The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!

750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65


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