difference between an appraisal and a property inspection?

The Function of an Appraisal

Homebuyers may become confused between the purpose of an appraisal and the purpose of an inspection. An appraiser evaluates a property to determine the value of the property based on its current condition, and the current market conditions. An “as is” value can be based on a property that does not meet minimum health and safety standards. In fact, some values end up being land value less demolition costs. Some mortgage clients require appraisers to take into account readily observable conditions and determine if the property meets minimum health and safety standards.

Compare that to the function of a home inspector who scrutinizes the physical condition of the property and identifies items that should be repaired or replaced. This includes pointing out problems that are not easily discernible to a novice homebuyer, informing them regarding working order, the need for repair or replacement, and telling the homebuyer about possible remaining economic life.

Neither the appraiser nor the inspector is responsible for guaranteeing the condition of the property, its systems, appliances, etc. They do not have to certify that the property is free of defects..