Once your offer is accepted on a home, two things happen that a lot of buyers confuse with each other: the home inspection and the appraisal. They sound similar. They both involve someone showing up to look at the house. But they serve completely different purposes, they're ordered by different parties, and they protect different interests.
Let me break down what each one actually does.
The home inspection: protecting the buyer
The home inspection is for you, the buyer. You hire an inspector — typically within the first 7-10 days after your offer is accepted — to go through the home and identify any problems.
A good inspector will look at:
- Structure — foundation, framing, walls, ceilings, floors
- Roof — age, condition, signs of leaks or damage
- Plumbing — pipes, water heater, water pressure, drainage
- Electrical — panel, wiring, outlets, grounding
- HVAC — heating and cooling systems, age, condition, ductwork
- Exterior — siding, grading, drainage, decks, driveways
- Interior — windows, doors, insulation, ventilation
- Appliances — anything that conveys with the home
The inspector will produce a report — usually pretty long — that documents everything they found, with photos. Some items will be minor (a loose outlet cover). Some might be significant (a crack in the foundation, an aging roof, outdated wiring).
Who pays for it: The buyer, almost always. In the CSRA, expect to pay somewhere in the $300-$500 range depending on the size and age of the home. Specialized inspections (radon, termite, sewer scope) are extra.
What happens with the results: The inspection report gives you leverage and information. Depending on your contract, you can:
- Ask the seller to make repairs before closing
- Ask for a price reduction or closing cost credit
- Accept the home as-is
- Walk away from the deal if the issues are too significant (assuming you have an inspection contingency in your contract)
The inspection is not a pass/fail test. Every home has something. The question is whether the issues are manageable or deal-breaking.
The appraisal: protecting the lender
The appraisal is different. It's not about the condition of the home — it's about the value.
When you're financing a home, your lender is lending you money based on the assumption that the home is worth at least what you're paying for it. The appraisal is how they verify that assumption.
An appraiser — assigned by the lender, not chosen by you — visits the property and evaluates it based on:
- Comparable sales — recent sales of similar homes in the area
- Property condition — general condition, not the detailed inspection level
- Location — neighborhood, proximity to amenities, lot characteristics
- Size and features — square footage, bedroom/bathroom count, garage, updates
The appraiser produces a report with their opinion of the home's market value.
Who pays for it: The buyer, as part of the loan process. The cost is typically $400-$600 in the CSRA area.
What happens with the results: If the appraisal comes in at or above the purchase price, everyone moves forward. If it comes in low — meaning the appraiser says the home is worth less than what you agreed to pay — that's where things get interesting.
What happens when the appraisal comes in low
This is one of the most common curveballs in real estate, so let me walk through it.
Say you're under contract to buy a home for $300,000. The appraiser says it's worth $285,000. The lender will only lend based on the $285,000 value. That leaves a $15,000 gap.
You have a few options:
The seller reduces the price. They agree to sell at $285,000 instead of $300,000. Some sellers will do this, especially if they want to close and don't have backup offers.
The buyer pays the difference. You bring an additional $15,000 to closing out of pocket, on top of your down payment. This only works if you have the cash and believe the home is worth it to you regardless of the appraisal.
You meet in the middle. The seller comes down to $292,500, you bring an extra $7,500. This is the most common resolution.
You walk away. If you have an appraisal contingency in your contract, you can terminate the deal and get your earnest money back. Nobody's happy about it, but it protects you from overpaying.
You challenge the appraisal. Your agent can submit a rebuttal with additional comparable sales that support the contract price. This occasionally works, but it's not a guarantee.
Low appraisals don't happen on every deal, but they happen often enough that you should understand the process before you're in the middle of it.
VA and FHA appraisals are different
If you're using a VA or FHA loan, the appraisal has an additional layer. VA and FHA appraisers evaluate the home against minimum property requirements — things like safe and functional systems, no lead paint hazards, adequate roofing, and working utilities.
A conventional appraisal is mostly about value. A VA or FHA appraisal is about value and condition. If the appraiser identifies issues that don't meet minimum property requirements, the seller may need to make repairs before the loan can close.
This is one reason some sellers are hesitant about VA and FHA offers. But in the CSRA, where a large percentage of buyers are military or first-time buyers using these programs, most sellers and listing agents understand the process and work with it.
Can you skip either one?
Inspection: Technically, yes. But I strongly recommend against it. The inspection is the buyer's best opportunity to understand what they're buying before they own it. In competitive markets, some buyers waive the inspection to make their offer stronger. In the CSRA, the market is rarely competitive enough to justify that risk.
Appraisal: If you're financing, no — the lender requires it. If you're paying cash, you can skip it, but it's still worth getting one to confirm you're paying a fair price. A few hundred dollars for an independent opinion of value is cheap insurance.
The timeline after your offer is accepted
Since we're talking about what happens after the contract, here's the general sequence:
Days 1-3: Your earnest money is deposited, your lender starts processing the loan, and you schedule the home inspection.
Days 7-10: The home inspection happens. You review the report with your agent and decide how to respond — repair requests, credit requests, or acceptance as-is.
Days 7-14: The lender orders the appraisal. The timing depends on appraiser availability in the area.
Days 14-21: The appraisal is completed and the report comes back. If there are issues, negotiations begin.
Days 21-30+: Final loan underwriting, title work, closing preparation. Your lender will ask for updated documents. Don't make any big financial moves during this period.
Closing day: You sign the paperwork, the funds transfer, and you get the keys.
This timeline can shift depending on the lender, the complexity of the deal, and whether any issues come up. A good agent keeps everything moving and communicates proactively when timelines shift.
The honest bottom line
The inspection protects you from buying a problem. The appraisal protects you from overpaying. Both are standard parts of the process, both cost money, and both are worth it.
If you're buying in the CSRA and want to understand how any of this applies to your specific situation, reach out. I'm happy to walk through the process with you before you're in the middle of it.