Appraisal — What It Is and Who It's For
A mortgage appraisal is an independent opinion of a property's market value performed by a state-licensed appraiser. It exists to protect the lender: the lender will never lend more than the appraised value regardless of what you agreed to pay.
- Ordered by the lender through an Appraisal Management Company (AMC) — never chosen by borrower or agent.
- Paid by the buyer, usually up front around the time of inspection.
- Based on comparable recent sales (typically 3–6 comps within 1 mile and 6 months, when available).
- Includes a brief interior/exterior visit and photos — not a defect inspection.
- In Florida, typically delivered within 7–14 days of order.
Home Inspection — What It Is and Who It's For
A home inspection is a professional, top-to-bottom review of the home's condition performed by a licensed home inspector. It exists to protect the buyer.
- Ordered and paid by the buyer directly, typically $350–$600 in Florida.
- Covers roof, structure, foundation, electrical, plumbing, HVAC, appliances, windows, doors, drainage.
- Delivered as a written report with photos, usually within 24–48 hours.
- Not required by the lender — but a critical due-diligence step for every buyer.
- You should attend if possible; the walk-through is often more valuable than the written report.
Florida-Specific Inspections to Consider
Four-Point Inspection
Required by many Florida insurers on homes 25+ years old. Covers roof, electrical, plumbing, and HVAC. This is an insurance inspection, not a home inspection — a separate report even though many inspectors can do both in one visit.
Wind Mitigation Inspection
Documents features that reduce wind damage risk — roof shape, roof deck attachment, secondary water barrier, opening protection. Almost always saves money on Florida homeowners insurance and often pays for itself many times over in the first year.
WDO / Termite Inspection
Wood-Destroying Organism inspection is required on VA loans and strongly recommended everywhere in Florida given termite pressure.
Roof Certification
Many Florida insurers now require certification of remaining roof life. Roofs under a certain age (or with tile/metal in good condition) get much better pricing.
Side-by-Side
- Purpose: Appraisal = value opinion for the lender. Inspection = condition assessment for the buyer.
- Who chooses: Appraisal = AMC-assigned. Inspection = buyer chooses.
- Who pays: Both typically paid by the buyer, but the inspector is paid directly and the appraiser through the lender.
- Required by lender: Appraisal yes, inspection no.
- Result: Appraisal = market value + condition callouts on FHA/VA/USDA. Inspection = detailed defect list with photos.
When the Appraisal Comes in Low
Options in order of frequency:
- Seller reduces the price to appraised value.
- Buyer covers the gap in cash (down payment is calculated off appraised value or purchase price, whichever is lower).
- Split the difference in a renegotiation.
- Appraiser reconsideration — submit better comps or corrections through the lender. Rarely changes the value but sometimes does.
- Buyer walks away using the appraisal contingency in the contract.
FHA & VA appraisals stay with the property
Common Questions
Do I need both an appraisal and a home inspection?
The lender requires an appraisal. A home inspection is optional but strongly recommended — it protects you, not the lender. Skipping the inspection to save $400 on a $400,000 purchase is a false economy.
What does an appraisal cost in Florida?
Typically $500–$700 for a standard single-family home, higher for large properties, condos with lengthy questionnaires, or complex/unique properties. FHA and VA appraisals are on the higher end.
What happens if the appraisal comes in below the purchase price?
Three options: (1) the seller lowers the price to the appraised value, (2) you bring extra cash to cover the gap, or (3) you renegotiate or walk away using your appraisal contingency. On VA and FHA, the appraisal is tied to the loan file — a second lender can't just re-order.
Can I use my own inspector?
Yes — the home inspector is chosen and paid by you. The appraiser, by contrast, is randomly assigned through an Appraisal Management Company to keep the process independent of the lender and borrower.
What to Do Next
When you're under contract, we'll walk you through the appraisal timeline, help you sequence your inspections to preserve your contingency deadlines, and — if the appraisal comes in short — run the numbers on every option before you decide.