Home Inspection vs. Appraisal vs. Final Walkthrough: What Chicago Buyers Should Know

Buying a home in Chicago often means navigating older construction, fast-moving contracts, and competitive offers. In that environment, three steps are frequently confused: the home inspection, home appraisal, and final walkthrough. While they may happen within the same few weeks, each plays a very different role in protecting your investment.

Understanding the difference can help Chicago buyers avoid surprises, especially when dealing with bungalows, two-flats, condos, and vintage rehabs.

What Is a Home Inspection in Chicago?

A Chicago home inspection is a detailed evaluation of a property’s visible condition, typically ordered by the buyer. Because many Chicago homes were built decades ago, inspections often focus on aging electrical systems, original plumbing, roof and masonry wear, basement moisture, and attic ventilation issues common in bungalows.

A licensed home inspector reviews major systems such as HVAC, electrical, plumbing, structure, and roofing, then provides a written report outlining safety concerns, maintenance issues, and potential repair costs.

According to the U.S. Consumer Financial Protection Bureau (CFPB), inspections are designed to help buyers understand the home’s condition before closing, not to determine value or approve financing.

https://www.consumerfinance.gov/ask-cfpb/what-is-a-home-inspection-en-145/

In short, a home inspection protects you, the buyer.

What Is a Home Appraisal?

A home appraisal determines whether the property’s value supports the purchase price. It is ordered by the lender and completed by a state-licensed appraiser familiar with the local Chicago market.

The appraiser evaluates the home’s size, location, condition, and recent comparable sales in nearby neighborhoods. While appraisers may note obvious issues, they do not test systems or inspect the home in depth.

The U.S. Department of Housing and Urban Development (HUD) explains that appraisals exist to protect lenders from over-financing a property—not to assess livability or repair needs.

https://www.hud.gov/program_offices/housing/sfh/ins/appraisals

What Is the Final Walkthrough?

The final walkthrough is the buyer’s last chance to confirm the home is in the agreed-upon condition before closing, usually 24 to 72 hours beforehand.

For Chicago buyers, this step is especially important after negotiated repairs or seller concessions. During the walkthrough, buyers confirm that repairs were completed, appliances remain in place, and no new damage has occurred since the inspection.

The walkthrough is not a formal inspection, but it can prevent unpleasant surprises after closing.

Why Chicago Buyers Need All Three

Each step serves a different purpose:

• Home inspection identifies condition and safety issues

• Appraisal confirms market value for the lender

• Final walkthrough ensures nothing changed before closing

Skipping or misunderstanding any of these steps can lead to delays, renegotiations, or unexpected costs—especially in Chicago’s older housing market.