An appraisal and an inspection serve two completely different purposes in the homebuying process. An inspection is a detailed evaluation of the home’s condition, performed to identify repairs, safety issues, or hidden defects before you commit to the purchase. An appraisal, on the other hand, is conducted for the lender to determine the property’s fair market value and ensure it supports the loan amount. While inspections protect the buyer from unexpected problems, appraisals protect both the buyer and the lender by confirming the home is worth what you’ve agreed to pay