How Appraisals and Home Inspections Differ: Key Distinctions

18 January 2026

Buying or selling a home? You’ve probably heard terms like “appraisal” and “home inspection” tossed around a lot. And chances are, you’re wondering—aren’t they pretty much the same thing? I mean, both involve someone checking out the house, right?

Well, not exactly. While they both play crucial roles in the real estate process, appraisals and home inspections serve entirely different purposes, target different things, and are handled by different professionals.

So, let’s pull back the curtain and take a deep dive into how appraisals and home inspections differ, and why both are vital in making smart real estate decisions.

Table of Contents

1. What Is a Home Appraisal?
2. What Is a Home Inspection?
3. Purpose: Value VS Condition
4. Who Orders and Pays?
5. When Does Each Happen?
6. What's Actually Evaluated?
7. Who's Doing the Evaluation?
8. Can They Impact the Buying Process?
9. Which One Is More Important?
10. Why You Need Both
11. Final Thoughts
12.