U.S. Mortgage Index

Home inspection

Definition

A home inspection is an examination of a home’s condition, often hired by the buyer to review structure and systems. It is not a property appraisal and not a survey.

In plain English

Before buying, a person may hire someone to walk the house and report what is worn, damaged, or unsafe. That review is a home inspection. An appraisal is an opinion of value for the lender. A survey shows where the lot and buildings sit. Inspection is about condition.

Technical definition

CFPB’s key-terms heading defines a home inspection as part of the buying process in which a hired inspector examines the property and its systems. That official heading is PRIMARY.

Why it matters

Buyers often treat an appraisal as an inspection. The two documents answer different questions.

Example

A buyer can receive both an inspection report about condition and an appraisal about value. One does not replace the other.

Commonly confused with

Sources reviewed