Inspections vs Appraisals

Inspections are typically ordered by the buyer as an unbiased assessment of the physical condition of a property.
They are not necessarily required by a lender; the inspection protects a buyer from purchasing a home that requires expensive repairs or does not live up to its list price.
An inspector will examine the condition of the property inside and out, focusing on the roof, electrical panels, wiring, plumbing, appliances, and doors and windows.
The inspector takes photos, makes notes, and provides the buyer with a report of issues that may require attention; some of which, may not necessarily affect financing.
If there are issues that the buyers aren't comfortable with, the buyers can ask the sellers to pay for or complete repairs, lower the purchase price, or provide some other concessions based on the inspection report's findings.
If major repairs are needed the lender may request those issues be addressed prior to granting financing.

An appraisal is an assessment of the fair market value of a property.
Appraisals occur after the inspection has been completed and addressed.
The appraiser will visit the property and typically spend 1-2 hours inspecting the interior and exterior, measuring the square footage, and evaluating the home's features and fixtures.
The appraisal also considers comparable homes in the area and other factors such as lot size, nearby schools and crime rates to determine the value of the property for the sake of the lender.
So, what if the home appraises for less than the agreed-upon sale price? If that happens, the lender typically won’t approve the loan; the buyers and sellers would then need to come to a mutually beneficial solution to keep the deal together.