Appraisals are necessary for several reasons: Mortgage Lending: Lenders require an appraisal to ensure the property's value supports the loan amount. Buying or Selling: Helps buyers and sellers determine a fair market price. Refinancing: Assists in refinancing decisions by establishing current property value. Tax Assessments: These may dispute property tax assessments. An appraisal estimates the market value of a property, focusing on factors that affect its overall value. On the other hand, a home inspection assesses the property's condition and identifies any potential issues or needed repairs