Technically, a home doesn't "pass" or "fail" an appraisal or inspection. However, the results of both can significantly impact the transaction: Appraisal: If the appraised value comes in lower than the agreed purchase price, it can complicate the mortgage process. The lender may not approve a loan for more than the appraised value, potentially requiring the buyer to make up the difference in cash or leading to renegotiation of the sale price. Inspection: While an inspection doesn't result in a pass/fail grade, it may reveal serious issues with the home that could cause a buyer to reconsider the purchase or request repairs. Significant problems discovered during an inspection can lead to further negotiations or, in some cases, the termination of the sale agreement if allowed by the contract terms. In both cases, the key is to work closely with your real estate agent to understand the implications of the appraisal or inspection results and navigate any challenges that arise.