Inspection, Appraisal, and Negotiation Are Different

An inspection evaluates physical condition and helps identify safety issues, defects, maintenance, and future repairs. Its scope depends on property type; a condo inspection is not the same as a house inspection, and building systems may sit outside the unit.

An appraisal is generally ordered for the lender to support collateral value. It is not a warranty of condition and does not replace inspection or legal diligence. A property can appraise and still have costly defects; it can also be in sound condition and appraise below the contract price.

Negotiation uses the contract, market, inspection findings, appraisal result, and each side's leverage. Not every finding justifies a credit, and not every low appraisal ends a deal. Before bidding, understand which contingencies protect you, their deadlines, and what happens if the parties cannot agree.