Pat Starnes Snippets: FAQ ~ Doesn't the Bank Order My Home Inspection?

FAQ ~ Doesn't the Bank Order My Home Inspection?

When talking to home buyers about ordering their home inspection, some express confusion, and think the home inspection and the appraisal is the same report. Some borrowers think the bank will order the "inspection" for them.

An appraisal is NOT the same as the home inspection.

New construction homes for sale

An appraisal determines the value of your property, in other words, what your home is worth. The appraiser will compare the age, number of rooms, amenities, and square footage to other properties that have recently sold to determine fair market value. Comparison properties are called "comparables" or "comps".

A Realtor prepares a Competitive Market Analysis (CMA) in the same way, but appraisers have additional training, licenses and certifications.

The appraisal does not determine if the home systems (air conditioning, water heater, plumbing, etc.) function properly, only that they exist. If you are borrowing funds to purchase a home, the appraisal is a requirement by the lender.

If the house does not appraise, a clause in the purchase contract protects the borrower from paying MORE than appraised price for the house.  The purchaser can OPT to pay more for the property than appraised price, but the funds cannot be borrowed. The buyer and seller may renegotiate the sales price if they desire, or the borrower can simply cancel the sales contract.

A home inspection, although optional, is highly recommended. The licensed inspector looks for evidence of roof leaks, plumbing leaks, wiring not to code, safety and mechanical issues, etc. that may affect the functionality of the property and cause expense in the near future.

The home inspector will provide a written report to the buyer stating the condition of the home. 

The appraiser provides their evaluation to the LENDER. In Mississippi, the borrower can request a copy of the appraisal from the lender.


If you have any questions regarding Mississippi real estate, or which to sell or purchase a property in the Brandon, Flowood, or Pearl area, I'd be more than happy to assist.

Written and Published by Pat Starnes REALTOR

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Pat specializes in Residential and New Home Sales 

Primary Service Area:

Brandon, Pearl, Ridgeland, Flowood, Madison and the Ross Barnett Reservoir area

 Pat Starnes, Broker Associate

Front Gate Real Estate, 6700 Old Canton Rd., Suite C

Ridgeland, MS 39157

601-991-2900 - Office

601-278-4513 - Cell


Recent Blog Posts by Pat Starnes:


Greenfield Station in Brandon MS Continues to Grow

Six Easy Tips to Save Money on Your Home Inspection

Should You Consult a Realtor When Buying New Construction?

Homes for Sale in Scottish Hills ~ Brandon MS 39047

Homes for Sale in Hidden Hills Subdivision, Brandon, MS 39047

Homes for Sale in Castlewoods Subdivision, Brandon, MS 39047

Gardens of Manship Neighborhood Information - Brandon, MS 39047


Are you looking to buy or sell a home in the Brandon MS market? Call me!

Comment balloon 5 commentsPat Starnes-Front Gate Realty • June 30 2017 10:44PM


Pat, isn't it amazing to find out that some people just have no idea what the steps of a home purchase are? As realtors, we are so used to it that sometimes we forget that these are not common knowledge.

Have a great weekend and 4th of July!

Posted by Monique Ting, Your agent under the sun (INET Realty Honolulu, HI) about 2 years ago

Although the internet has given people all kinds of infomation it is vey clear they still need us to explain it all.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 2 years ago

Buyers get so confused about the appraisal and home inspection. The mix up the terms and don't know they ever get it straight in their minds.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 2 years ago

Pat good job on explaining the difference between an appraisal and a home inspection.  Many Buyers are surprised when I tell them that I think a home inspection is a great idea, and I would not purchase a house without doing one.  But lenders do not require them as part of the loan process.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 2 years ago

Wonderful explanation of the difference, Pat! I find that this is often confused by buyers and sellers as well. I feel like I've always understood the difference but, I'm sure I was as confused as some before I got into the business!  LOL

Hope you have a fabulous Fourth!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods ( | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) about 2 years ago

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