Inspection vs. appraisal: two completely different processes both required in most home purchases. The home inspection protects you, the buyer; the appraisal protects the lender. This guide explains the differences, what each covers, who pays, and what happens if either reveals issues.
Key takeaways at a glance
- Home inspection protects the BUYER. Appraisal protects the LENDER (and indirectly the buyer).
- Inspection: $400-$650, 2-4 hours, scheduled by buyer.
- Appraisal: $500-$800, ordered by lender after offer.
- Failed inspection: negotiate repairs or walk away (within contingency).
- Low appraisal: renegotiate, bring difference in cash, or walk (within contingency).
| Aspect | Home Inspection | Appraisal |
|---|---|---|
| Purpose | Condition assessment | Value assessment |
| Who orders | Buyer | Lender |
| Who pays | Buyer | Buyer |
| Who attends | Buyer (last hour) | Appraiser only |
| Output | Detailed condition report | Value certificate |
| Triggers what | Repair negotiations | Financing decision |
| Required? | Optional but strongly advised | Required for almost all loans |
| What if it fails | Negotiate or walk (within contingency) | Renegotiate, bring cash, or walk |
VA and FHA appraisals address property condition more strictly than conventional appraisals.
In this guide
Home inspection
You hire a licensed home inspector after offer accepted. Inspector walks through the home for 2-4 hours and produces a written report covering structure, roof, HVAC, electrical, plumbing, water heater, attic, and crawlspace. You attend the last hour for a walk-through. Cost: $400-$650.
Appraisal
Lender orders the appraisal after underwriting begins. Independent appraiser values the home based on comparable sales. Cost: $500-$800, paid by buyer (sometimes upfront, sometimes at closing).
Key differences
- Purpose: Inspection = condition; Appraisal = value
- Who orders: Inspection = buyer; Appraisal = lender
- Who attends: Inspection = buyer (usually); Appraisal = appraiser only
- Output: Inspection = condition report; Appraisal = value certificate
- What it triggers: Inspection = repair negotiations; Appraisal = financing decision
What if inspection finds issues?
You negotiate with the seller within the inspection contingency window: repairs, credits, price reductions, or walk away. Most Virginia residential contracts have a 7-14 day inspection contingency.
What if appraisal comes in low?
Three options: (1) renegotiate price down to appraised value, (2) bring the difference in cash, or (3) invoke the appraisal contingency to walk away with earnest money returned.
VA and FHA special appraisal rules
VA and FHA appraisals address property condition more strictly than conventional appraisals. Requested repairs (peeling paint, exposed wiring, missing handrails) must be completed before close.
Frequently Asked Questions
Do I need both an inspection and appraisal?
Inspection is optional but strongly recommended. Appraisal is required by the lender for almost all loan types (waived only on certain VA/FHA streamline refinances).
Who pays for the home inspection?
The buyer, typically out of pocket about a week into the contract. $400-$650 typical.
Who pays for the appraisal?
The buyer, but the lender orders it. Sometimes paid upfront, sometimes rolled into closing.
What if the appraisal is low?
Renegotiate price, bring difference in cash, or walk away (within appraisal contingency window).
What if the inspection finds problems?
Negotiate repairs, credits, or price reductions with the seller. Or walk away within the inspection contingency window.
Should I attend my home inspection?
Yes. Show up for the last hour for a walk-through. Ask questions. The inspector explains issues better in person than on paper.
How long does a home inspection take?
2-4 hours for an average single-family home. Larger or older homes may take longer.
Can I waive the appraisal?
Sometimes — typically requires a strong cash position and willingness to bring the difference if value falls short. Risky for first-time buyers.
Have a question about your home purchase?
Talk to a Hampton Roads buyer's agent or loan officer who can walk through your specific situation - no pressure, no obligation.
Sources & further reading
Information reflects 2025-2026 conditions and rules. Always confirm current details with the relevant agency, lender, or licensed professional before relying on any specific figure or rule.
About the Author
The VaHome Team is dedicated to providing expert real estate insights for Hampton Roads, Virginia. Contact us at (757) 777-7577 or tom@vahomes.com.
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