Inspections and Appraisals - What’s the Difference and Which Do You Need?

Some people think that appraisals and inspections are pretty much the same. However, the purpose of each is different. At Arrowhead Title, we know both serve a critical purpose to your real estate closing. Appraisals are focused on determining the value of your home at Lake of the Ozarks. Your lender must know that the property you’re buying is worth what they are loaning you. The home inspection is for the purpose of determining the condition of the home. That is something every buyer needs to know before making such a big investment. The inspector is looking for things like major problems with the house or anything that could be a dealbreaker if you knew about them, including health and safety hazards. If you’d like to understand how appraisals and home inspections at Lake of the Ozarks work, keep reading. This blog will explain. 


Appraisals are focused on the value of the home. As mentioned, your lender needs to know that the home is worth what they are loaning you. The value of your home is determined by a number of different factors. The size of the lot it’s on, the location of the lot, what comparable properties have sold for recently in that area, are all factors that will be considered. Access to medical facilities and schools can also impact the value of your home. An appraiser will look for signs of poor maintenance or neglect, as well. If the house shows a lot of damage, repairs that have not been made, and things don’t work as they should, it can very well reduce the value of your home. On the other hand, improvements, newer systems, and proper maintenance will affect the home’s appraisal value in the positive. 


No house is perfect, and there will always be some things that we would like to be better. But when it comes to safety concerns or major systems or components, there can be a point where discovering certain problems can cause you to change your mind on whether you actually want that house, or reconsider what you are willing to pay for it. An improperly wired house that could lead to electrical problems or fire, is one example. Other examples include foundation problems or important systems like your HVAC, plumbing, roof, etc. If any major system is failing or near failing, it could cause a buyer to reconsider. A home inspection will also include a look at major appliances. If any are old, at the end of their lifespan, or not functioning properly, that will be noted. An inspector will likely look at the crawlspace and attic to examine ductwork and look for signs of moisture, mold, or other issues. The better access your inspector has to all parts of the house, the more thorough his inspection can be done.  For sellers, it is worth considering having a home inspection done prior to putting your house on the market, that way you can fix things preventatively and have a smoother closing process.

Knowledge is Power

As you can see, when it comes to inspections and appraisals, they each have their own purpose and both are very necessary. While the appraisal is more for your lender, it is also important for you to know that you are not overpaying for a house. When it comes to the inspection, you have to live with your purchase, and if there are safety hazards, health issues, or major problems with the house, it is your benefit to know that before you buy. It may seem like an unexpected and unnecessary expense, but it is well worth the information you get from your appraisal and inspection so you can be confident when you’re making such a big decision, that is it a well informed one. 

Arrowhead Title is Here For You!

If you have any questions whatsoever about the closing process or specifically about home inspections or appraisals at Lake of the Ozarks, Arrowhead Title is here to help. We have a philosophy that’s based on clear communication with all of our clients. We want you to understand the entire process and be confident that everything is as it should be. When you are ready to buy a house in Lake of the Ozarks, consider Arrowhead Title for all your real estate closing services at Lake of the Ozarks. If you would like to stay up-to-date with all our latest news and tips about real estate at Lake of the Ozarks, we invite you to follow us on social media! Our channels are listed below with convenient links for you to use.

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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