What is the difference between an appraisal and an inspection?

An appraisal is required by your lender to confirm the property is worth at least the loan amount. The appraiser estimates market value based on recent comparable sales and the home's condition. An inspection is optional but strongly recommended. The inspector evaluates the physical condition of the home, looking for defects, safety issues, and deferred maintenance. The inspection protects you, the buyer, while the appraisal protects the lender. In Arizona, you have a ten day inspection period starting the day after contract acceptance. You can negotiate repairs or cancel based on inspection findings, but the appraisal affects your financing and purchase price.