T he main difference between an appraisal and an inspection is that an appraisal determines the value of a property, while an inspection assesses its condition. Appraisal An appraisal is an unbiased estimate of the fair market value of a property. It is based on a comparison of the property to similar properties that have recently sold in the same area. Appraisals are typically required by mortgage lenders to ensure that the borrower is not borrowing more money than the property is worth. Inspection A home inspection is a visual examination of the property's structure and systems. It is typically performed by a licensed home inspector. The purpose of a home inspection is to identify any major defects or problems with the property. Home inspections are not required by lenders, but they are highly recommended for homebuyers. Here is a table that summarizes the key differences between appraisals and inspections: Characteristic Appraisal Inspection Purpose Determine the value of a prop...