Appraisals

There is often a lot of confusion about appraisals. Some people think that there is no difference between an "appraisal" and an "inspection." Not true! An appraisal is a valuation of the property that the lender requires to make sure that they are not giving out a mortgage on an overpriced property. The appraiser typically has no obligation to inform the buyer as to the condition of the property (with one exception under FHA mortgages).

A home inspector will look at the structural condition of the property and is typically hired by the buyer and reports to the buyer.

Realtor.com has a good article that helps explain an appraisal and refute the myths/misconceptions people have about appraisals.