Home Appraisal
A home appraisal reveals the value of a home. Home appraisals are generally ordered by the lenders to ensure that the home or business is worth the amount of money it is being purchased for. Lenders want to ensure that they are not lending more than the home is actually worth.
Appraisals are also performed by county governments in order to estimate the value of a home for the purposes of charging real estate taxes. A tax appraisal is not the same as a regular appraisal since tax appraisals hardly ever actually match the price that a home can actually be sold for.
An appraisal doesn't reveal structural or maintenance problems with the structure that need to be repaired.
Home Inspection
A home inspection is designed to reveal any potential problems with a home, business, or commercial building. Sellers sometimes will order inspections prior to putting a home up for sale so the condition of the structure is known, or at least to find out what potential buyers will probably demand to be fixed before purchasing. Buyers also order inspections in order to make sure that the home they intend to buy is sound in structure and that there are no surprises after closing.
Mortgage guarantors, such as The FHA and the VA, require inspections on all homes purchased using a guarantee. These organizations have strong guidelines as to what is acceptable in a home that is to be purchased. Homes that don't pass these inspections will not receive funding by the guarantor until the problems have been remedied.
Home inspections do not estimate the value of a home.