Home Buying 101: Home Inspections & Appraisals

Why they matter and what to expect.

Welcome back to our Home Buying 101 series—your step-by-step guide to navigating the path to homeownership. In our last article, we discussed how to make a strong offer on a house. Now, it’s time to dive into what happens next: home inspections and appraisals.

These two steps are crucial but very different. While they both protect buyers, one focuses on uncovering the condition of the home, and the other ensures the property is worth what you’ve agreed to pay. Let’s break it down.

A home inspection is a thorough evaluation of the property’s condition, performed by a licensed inspector. Unlike an appraisal, which is primarily about value, an inspection is about the home’s safety and functionality.

Inspectors typically:

Essentially, inspectors look for visible defects and potential safety issues. They don’t tear into walls or guarantee the life expectancy of systems, but they give you a clear picture of the home’s current condition.

Timing of Inspections

Inspections usually happen immediately after mutual acceptance of your contract. That’s because the inspection contingency often expires within 5–10 days. This short window is your chance to find issues and negotiate repairs or credits with the seller. Waiving an inspection contingency can make your offer stronger in a competitive market, but it also means you’re taking on risk. Skipping an inspection might save time, but it could leave you with expensive surprises down the road.

The Changing Role of Inspections

In the past, inspections were almost always included as a standard contingency. But in today’s competitive markets, it’s become more common for buyers to waive inspections to make their offer more attractive. If there’s 6 offers on a home, there’s probably a few that have waived inspection. And when a seller is choosing which to accept, assuming the prices are similar, they will logically choose the on with the fewest contingencies.

⚠️ The Risk: Waiving an inspection may speed up your purchase, but it leaves you vulnerable to hidden issues that could cost thousands later.

A home appraisal is ordered by your lender to determine the market value of the home. The lender wants to be sure the property is worth at least the amount you’ve agreed to pay. Unlike inspectors, appraisers are not there to hunt for defects.

Appraisers typically:

• Measure the square footage and confirm property details.
• Compare the home to recent sales of similar properties in the area.
• Note obvious health or safety hazards—such as mold, rotting railings, or missing flooring—but they won’t crawl under the house or test systems.

An appraisal doesn’t protect you from repair costs; it protects the lender from lending too much on an overvalued home.

Timing of Appraisals

While inspections happen right away, I usually recommend waiting to order the appraisal until after the inspection and other contingencies are resolved. Why? Because once the appraisal is ordered, you’re paying for it regardless of whether you still want to move forward. By handling inspections and negotiations first, you avoid wasting money if you decide to walk away.

While both happen after your offer is accepted, they serve distinct purposes:

• Inspection = Condition. Is this home safe, functional, and free of major defects?
• Appraisal = Value. Is this home worth what the buyer agreed to pay?

Both are vital in different ways: the inspection protects you, the buyer, while the appraisal primarily protects the lender.

Home inspections and appraisals are two of the most important steps after your offer is accepted. An inspection tells you what you’re really buying, while an appraisal confirms the home’s value. Together, they help protect your investment and ensure you’re making a smart decision.

Skipping either step can create unnecessary risk, so knowing what to expect will help you make informed decisions throughout the process.

➡️ Stay tuned for the next article in our Home Buying 101 series, where we’ll cover what happens after inspections and appraisals are complete—navigating repairs, appraisals gaps, and moving toward closing.

Have questions about inspections, appraisals, or the timing of each? Let’s talk!