Buying & Selling
Appraisal vs Home Inspection: What's the Difference?
By Carlos E. Larocca, Certified Residential Appraiser (Cert Res RD6469)4 min read
An appraisal is an opinion of market value prepared by a state-certified appraiser. A home inspection is a condition report prepared by a licensed inspector. The appraiser notes condition only where it affects value; the inspector evaluates systems but never concludes a value.
Purpose
The appraisal answers what the property is worth. The inspection answers what is wrong with it. Lenders require the first; buyers usually want the second.
Scope of work
An appraiser measures the improvements, photographs the property, and analyzes market data. An inspector tests outlets, runs appliances, inspects the roof and attic, and produces a defect list. Neither professional opens walls.
Who orders and who pays
Mortgage appraisals are ordered by the lender and paid by the borrower. Inspections are ordered directly by the buyer. Private appraisals for estate, divorce, or tax appeal purposes are ordered by the client directly.
- Appraisal: $450–$900 typical in South Florida
- Home inspection: $300–$600 typical, more for large or older homes
- Both are independent of the real estate brokerage
Frequently asked questions
- Can an appraisal replace a home inspection?
- No. An appraiser observes readily visible condition to the extent it affects value but does not test systems or produce a repair list.
- Will an appraiser fail a property for repairs?
- For certain loan types an appraiser may require repairs affecting safety, soundness, or structural integrity before the value can be relied on. Otherwise, condition is reflected in the value rather than in a pass or fail.