It’s common for buyers to hear the terms inspection and appraisal used interchangeably—especially early in the process. While both occur after a home goes under contract, they serve very different purposes and answer very different questions.
This post is intended to clarify the distinction, explain how each fits into the transaction, and offer perspective on why both exist. It’s not a checklist or a strategy guide—just context.
What a home inspection is
A home inspection is an evaluation of a property’s condition. It’s typically conducted by a licensed inspector and focuses on visible and accessible components of the home—such as the structure, roof, mechanical systems, and major fixtures.
The purpose of an inspection is information. It helps buyers understand the current condition of the property, identify potential concerns, and assess whether they’re comfortable moving forward given what they learn.
An inspection does not determine value, and it does not decide whether a home is “good” or “bad.” Nearly every home has imperfections. The question is which ones matter.
What an appraisal is
An appraisal is an opinion of value, usually ordered by a lender. Its purpose is to confirm that the property’s value supports the loan amount being requested.
Appraisers analyze comparable sales, market conditions, and the property itself to arrive at an estimated value. While appraisals include observations about the property, they are not condition reports in the same way inspections are.
The appraisal exists to protect the lender’s interest—not to assess livability or maintenance.
How inspections and appraisals work together
Inspections and appraisals often occur around the same time, but they are independent of one another.
An inspection may reveal information that helps a buyer decide how to proceed. An appraisal may confirm—or challenge—the agreed-upon price. One does not replace the other, and neither is designed to predict outcomes.
Understanding the role of each helps keep expectations grounded and decisions measured.
Why this distinction matters
Confusion between inspections and appraisals often leads to unnecessary stress. Buyers may expect an appraisal to “catch” condition issues, or assume an inspection will validate value. When those expectations aren’t met, frustration follows.
Clarity about purpose allows each step to be approached with the right mindset: inspections for understanding, appraisals for valuation.
Closing perspective
Both inspections and appraisals exist to provide clarity—not certainty. When understood in context, they support informed decision-making rather than dictate it.
If questions come up as you think this through, we’re glad to talk.