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

The primary difference between a home inspection and a home appraisal lies in their fundamental purposes and outcomes. A home inspection is a thorough evaluation of a property's physical condition, including its structure, systems, and safety features. It aims to identify any issues or repairs needed before a buyer moves forward with the purchase. On the other hand, a home appraisal is conducted to determine the market value of the property. It assesses factors such as the property's location, comparable sales in the area, and overall market conditions, ultimately producing a value that lenders often use to inform mortgage lending decisions.

In contrast, the other choices do not accurately capture the core distinctions between the two processes. While a home inspection does consider repairs needed, it is not primarily focused on aesthetic appeal, which is more aligned with appraisals. Furthermore, both home inspections and appraisals are relevant for both buyers and sellers, as buyers seek to understand the property's condition, whereas sellers may need an appraisal to set a competitive market price. Finally, while inspections do cover external elements, they also delve deeply into the interior aspects, contrasting with appraisals that focus more on value assessment rather than physical condition.