They’re not the same thing, and one doesn’t cover the other
Two reports, two decisions to make
An inspection report can lead to more checks or work you’ll need to budget for. An appraisal below the offer price increases the cash you have to bring, or forces you to rethink the deal.
- Inspection: condition, visible risks, upcoming maintenance
- Appraisal: comparables and the recognized value
- Financing: how that value hits the loan and the down payment
You offered more than the recognized value
A worked example
You offer $480,000 on a house. The inspection reveals a roof to redo within two years, about $14,000. The appraisal ordered by the lender comes in at $465,000. The lender finances on $465,000: at 20% down, the maximum loan drops from $384,000 to $372,000, and you are $12,000 short on closing day, on top of the roof to budget for. The two reports say different things: one speaks of condition, the other of value, and both touch the cash you have to bring.
When it does not apply
For a new condo bought off plans, there is no classic inspection at the time of the offer; the checks concern the developer, the syndicate’s documents, and the new-home warranty. For an insured loan, the insurer may settle for an automated valuation without a visit, and you will not see the report. And if your down payment is very large, a low appraisal does not block the financing, it only changes the ratio; it does remain a signal about the price you are paying.
Who orders it, who pays, who reads the report
The inspection is yours: you order it, you pay for it, and the report belongs to you. You choose the inspector, you attend the visit, you ask your questions on site. Expect $500 to $900 depending on the property. The appraisal is ordered by the lender from an appraiser on its list, usually at your expense, $350 to $600, and the report belongs to the lender. You see the result, the value retained, rarely the whole document. For an insured mortgage, the insurer often uses an automated value: no visit, no fee, an answer within hours. If that automated value comes out too low or too uncertain, an appraisal with a visit is then requested. The practical point: the inspection is booked the day the offer is accepted, the appraisal only once the file is filed, and both have to fit inside your financing deadline.
How Mathieu can help
Sources and review
OACIQ — Building inspection. Reviewed August 12, 2026.