These get confused in almost every transaction, and the confusion is expensive when a buyer assumes the lender's appraisal covered the condition of the house. It did not, and it was never trying to.
The short version
| Home inspection | Appraisal | |
|---|---|---|
| Question answered | What condition is this building in? | What is this property worth? |
| Who orders it | The buyer (or a seller, pre-listing) | The lender, though the buyer usually pays |
| Who it protects | The buyer | The lender |
| Typical Ottawa cost | $400 – $650 | $300 – $500 |
| Time on site | 3 – 4 hours | 20 – 60 minutes, sometimes desktop only |
| Output | 30–50 page illustrated condition report | Short valuation report with comparable sales |
| Attic and crawlspace | Entered | Not entered |
| Electrical panel | Opened | Not opened |
| Optional? | Yes — your choice | Effectively no, if you are financing |
What an appraiser is actually doing
An appraiser is establishing market value to protect the lender's security. They measure the property, note its size, age, condition in broad terms, and finishes, and then value it against recent comparable sales in the area. Condition matters to them only insofar as it affects value — a roof at end of life may be noted; the fact that the bath fan vents into the attic will not be, because it does not move the number.
Appraisers do not enter attics or crawlspaces, do not open electrical panels, do not run systems, and do not test anything. It is not an oversight; it is simply a different job.
What an inspector is actually doing
An inspector is establishing physical condition to protect you. They spend three to four hours examining the systems, they enter the spaces, they run the equipment, and they write up what they find in detail. They have no opinion on value and should not offer one — an inspector who tells you what the house is worth is outside their competence.
Related things people also confuse
Municipal or building inspection
A city building inspector verifies code compliance on permitted work. They are not assessing the whole house and are not working for you.
Home warranty
An insurance product covering specified systems for a period, sold either by a builder programme on new homes or by third parties on resale homes. It covers future failure; an inspection describes present condition. They complement each other and neither substitutes for the other.
Insurance inspection
A narrow look at the four systems an insurer cares about — roof, wiring, plumbing, heating — done for underwriting. Much cheaper and much narrower than a home inspection.
Reserve fund study
A condominium document projecting the corporation's capital repair needs and funding. Essential reading when buying a condo, and no substitute for inspecting your own unit.
Do you need both?
If you are financing, you will have an appraisal whether you want one or not — the lender requires it. Whether you have an inspection is entirely your choice, and it is the only one of the two performed on your behalf.
An appraisal that comes in at value tells you the bank is satisfied with its security. It tells you nothing at all about whether the sewer lateral is collapsed.
Frequently asked
Does an appraisal include a home inspection?
No. An appraiser establishes market value for the lender and typically spends under an hour on site without entering attics or crawlspaces or opening the electrical panel. A home inspection is a separate, far more detailed assessment of physical condition performed for the buyer.
Do I need a home inspection if the appraisal came back fine?
Yes, if you want to know the condition of the building. An appraisal confirms the lender’s security is adequate; it is not a condition assessment and does not examine the systems.
Which costs more, an inspection or an appraisal?
In Ottawa they are broadly comparable — appraisals typically $300 to $500, inspections $400 to $650 — but the inspection involves several times more time on site and produces a far more detailed document.