Appraisal vs Home Inspection
These are complementary — not substitutes. An appraisal estimates market value; a home inspection evaluates the physical condition of the building's systems.
What's actually different
| Dimension | Appraisal | Home Inspection |
|---|---|---|
| Question answered | What is it worth? | What condition is it in? |
| Professional | Designated appraiser | Licensed / certified home inspector |
| Cost | $400 – $1,500 | $400 – $900 |
| Required by lenders | Often | No — but strongly recommended for buyers |
| Includes systems test? | No (visual only) | Yes — HVAC, plumbing, electrical, roof, structure |
| Defect liability | No | Inspector E&O insured |
- •You need a value for lending, legal, tax, or estate purposes.
- •You're buying a property and need to know what may fail or need repair.
People also ask
Request appraisal quotes
Keep learning
An appraisal is a documented opinion of value by a licensed professional based on inspection and comparable analysis. An AVM is a statistical estimate from sale records and property attributes — fast, cheap, and inappropriate for most legal, lender, and tax uses.
A CMA is a pricing tool prepared by a real estate agent to help a seller set a list price. It is not an independent valuation and is not accepted for lender, legal, or CRA reliance.
A property tax assessment is a mass-appraisal value produced by a provincial assessment authority for tax calculation — it lags the market, often uses an out-of-date base date, and cannot be used as evidence of current market value.
A BPO is a price opinion provided by a real estate broker, typically for lenders managing distressed or REO assets. It is faster and cheaper than an appraisal but is not produced by a designated appraiser and is excluded from many regulated uses.
Appraisals come in three inspection scopes — full (interior + exterior), drive-by (exterior only), and desktop (no inspection, all data from records and photos). The scope must match the intended use.