What's the difference between a home inspection and a home appraisal?

When you're buying a home, you'll likely run into both a home inspection and a home appraisal — often within the same week. They sound similar, they happen around the same time, and both involve someone walking through the property. But they answer completely different questions.

The short version: an inspection tells you about the condition of the house. An appraisal tells you about its value.

What a home inspection covers

A home inspection is about condition. An inspector walks the property and reports on what they can see and access — the roof, the foundation, the heating and cooling systems, plumbing, electrical, appliances, and signs of water damage or pests.

The goal is to give you, the buyer, a clear picture of what you're getting. The report flags things that are broken, worn out, or likely to need attention soon. It's not a pass/fail test — almost every house has something on the list. It's information you use to decide whether to proceed, renegotiate, or ask the seller to make repairs.

Who pays and who it's for

The buyer usually pays for the inspection and orders it themselves. The report belongs to the buyer. It's one of the most useful documents you'll ever get about your home, because it's a snapshot of the property's condition on the day you bought it.

What a home appraisal covers

An appraisal is about value. A licensed appraiser estimates what the home is worth based on its size, condition, features, location, and — most importantly — recent sale prices of comparable homes nearby (comps).

The appraisal exists mainly to protect the lender. A bank won't lend more than a home is worth, so the appraisal confirms the property is reasonable collateral for the loan. If the appraisal comes in below the agreed sale price, it can affect how much the lender will offer.

Who pays and who it's for

The buyer typically pays for the appraisal, but it's ordered by and reported to the lender. The appraiser isn't checking whether your furnace works or your roof leaks — they're forming an opinion of value.

A quick side-by-side

	Home inspection	Home appraisal
Answers	What condition is it in?	What is it worth?
Who it serves	The buyer	The lender
Who orders it	The buyer	The lender
Required?	Optional but strongly recommended	Usually required for a mortgage
Result	Detailed condition report	Estimated market value

Why both are worth keeping

Both documents are valuable long after closing day, and they're easy to lose track of in a pile of paperwork.

The inspection report is a baseline record of your home's condition. Years later, it can remind you how old the water heater was when you moved in, whether the previous owner had a known roof issue, or what the inspector recommended keeping an eye on. That's exactly the kind of thing worth saving in your home's living record — alongside repair receipts, warranties, and notes on the systems the report flagged.

The appraisal is a useful financial reference point. It documents your home's value at a specific moment, which can matter for insurance, refinancing, or tax questions down the road.

Keeping both filed in one place — with the date and the names of the professionals who produced them — means you can find them when you need them instead of digging through a folder five years from now.

When to bring in a professional

Neither an inspection nor an appraisal is something to do yourself. Inspectors and appraisers are trained, often licensed, and carry the right tools and liability. If your inspection turns up something concerning — say, a note about the electrical panel or possible moisture in the basement — the right next step is to have a qualified specialist in that trade take a closer look, not to start opening things up. The inspection points you toward what deserves a closer look; the specialist tells you what to actually do about it.