Get the home inspection first, then the appraisal. If the inspection reveals a major problem like a bad roof, you want to negotiate repairs or a price reduction before the appraiser arrives -- not after.
Appraisal vs. Inspection
Home Inspection: Detailed evaluation of the home's condition (roof, plumbing, electrical, HVAC, foundation, etc.). Identifies problems and estimated repair costs. Done by a home inspector. Cost: $300-500.
Appraisal: Independent evaluation of the home's market value. Used by lenders to ensure the home is worth the loan amount. Done by a licensed appraiser. Cost: $500-1,500 (higher for luxury).
They're done by different professionals for different reasons. Don't confuse them.
Which Should Come First?
Here's my recommendation: Home inspection first, appraisal second.
Why? If the inspection reveals a $15,000 roof problem, you want to negotiate repair credits or price reduction before the appraisal happens. The appraisal might be impacted by the roof condition, and you want to control that narrative.
If you get the appraisal done first and then the inspection finds a roof problem, you're negotiating with more uncertainty. Will the appraiser have already reduced value based on roof condition? Will the seller accept a lower price after appraisal?
The Practical Timeline
Here's how I'd sequence it:
- Make offer (includes inspection and appraisal contingencies)
- Inspection (5-10 days after offer acceptance) — Schedule within 7 days
- Negotiate inspection results (3-5 days) — Get credits or price reductions for major items
- Order appraisal (after inspection negotiations complete) — Your lender orders it, appraiser has 3-4 weeks
By the time the appraisal is ordered, you've already negotiated major condition items. The appraisal confirms value based on the current agreed-upon condition.
Why This Matters for Appraisals
If you have a major repair need that's being addressed before closing (roof, foundation, HVAC), the appraiser should note that in the report. It affects how condition is assessed.
If the appraiser doesn't know about agreed-upon repairs, they'll assess condition as-is, potentially reducing value.
Getting appraisals after inspection negotiations means the appraisal is done with full knowledge of condition issues and solutions.
The Appraisal Contingency
Your purchase contract typically has an appraisal contingency: If the home appraises below the purchase price, you can renegotiate or walk away.
This is your insurance policy. If the home appraises at $475,000 and you agreed to $500,000, your appraisal contingency protects you.
But inspect first. Don't let a low appraisal be your first indication that there's a major problem.
Lender Requirements
Your lender will order the appraisal. You don't get to choose timing—they do, based on their process.
But you can ask your lender when they'll order it (typically after inspection period closes). That lets you sequence things strategically.
Red Flags in Appraisals
If the appraisal comes back low and the inspection didn't find major problems, something's off. Either:
- The appraiser made an error (possible, though rare)
- The appraiser is seeing deferred maintenance you missed
- The market conditions are worse than you thought
- The comparable sales the appraiser used are skewed
If the appraisal comes back low, your home inspector report becomes important ammunition. You can show the appraiser: "The home is in condition X, comparable homes in condition X are selling at Y, your appraisal of Z doesn't align."
The Cost-Benefit Analysis
Inspection costs $300-500. Appraisal costs $500-1,500. Both are required (inspection by choice, appraisal by lender requirement).
The timing costs nothing. It just requires strategic thinking.
Do inspection first. Negotiate condition. Then appraise. It's basic transaction strategy.
What Not To Do
Don't negotiate inspection items and then have the appraiser not know about the negotiations. That creates confusion and potential low appraisals.
Don't appraise before inspecting and then find out the home has major issues. Now you're tied to a value that doesn't account for the problems.
Sequence matters. Do it right.