Although entirely different and unrelated parts of the home-buying process, homebuyers sometimes confuse an appraisal and a home inspection. An appraisal and a home inspection are not the same.
An appraisal is a formal assessment of the value of a home or property. When you are seeking to finance, the lender requires a licensed appraiser to ascertain the property value to make sure the loan amount does not exceed the value of the home. The homebuyer pays for the appraisal, which typically costs between $400 and $500.
A home inspection is an assessment of the systems and structural integrity of the property, and it's an opportunity to find any hidden problems with the home. The inspection is scheduled once under contract and during the option period and is paid by the buyer. The cost of the home inspection will vary between the inspector, the size of the home, and the type of property. And typically, the cost starts at around $350.