Buying a home in Richmond comes with a lot of moving parts, and two of the most important are the appraisal and the home inspection. They sound similar, but they do very different jobs. If you know what to expect from each, you can protect your budget, your timeline, and your peace of mind.
In this guide, you will learn what each report covers, who orders and pays, typical timing and costs, and Richmond-specific issues to plan for. You will also get simple checklists and next steps if problems arise. Let’s dive in.
Appraisal vs. inspection basics
What an appraisal does
An appraisal gives your lender an independent opinion of market value. A licensed or certified appraiser follows the Uniform Standards of Professional Appraisal Practice, explained by the Appraisal Foundation. Lenders use this report to confirm the home is worth at least the amount they are lending.
The lender usually orders the appraisal, and you typically pay the fee at closing. Appraiser independence is required under federal rules, which protect the process from pressure. The Consumer Financial Protection Bureau explains the basics of how appraisals fit into a mortgage.
For government loans, extra rules apply. FHA appraisals check HUD Minimum Property Requirements, and VA appraisals check VA requirements. Learn more about FHA property standards at HUD and VA appraisals and loan rules.
What a home inspection does
A home inspection gives you a clear picture of the home’s condition at the time of inspection. It is a visual, non-invasive review of major systems and components, safety concerns, and material defects. Inspectors follow standards such as the InterNACHI Standards of Practice or the ASHI Standards of Practice.
You choose and hire the inspector, and the inspector reports to you. The inspection does not set value. It highlights current issues and near-term repairs so you can negotiate or plan your budget.
Who orders and who pays?
- Appraisal: The lender orders it. You usually pay the fee as part of closing costs. The report is prepared for the lender. Communications about corrections or extra data should go through your lender’s process.
- Inspection: You hire and pay the inspector. The report is prepared for you. Sellers and agents may attend, but you decide how to use the findings.
What each report includes
Inside an appraisal report
- Property and neighborhood description, site data, and photos.
- Comparable sales with adjustments and a final opinion of value, usually based on the Sales Comparison Approach. Fannie Mae and Freddie Mac forms may apply depending on the loan.
- Notes on obvious condition issues that affect value. It is not a full condition audit.
Inside an inspection report
- System-by-system findings with photos and clear categories such as safety, major, and minor.
- Recommended repairs and maintenance, plus suggestions for specialist evaluations.
- Optional add-ons if you order them, like radon testing, termite or WDI inspection, sewer scope, or mold testing.
Timing and costs in Richmond
- Inspection: You usually schedule within 1 to 7 days after your contract is ratified. Many inspectors return reports within 24 to 72 hours.
- Appraisal: Lenders often see 7 to 14 days from order to delivery. Unique or complex homes can take longer.
- Costs: Inspection fees commonly range around 300 to 600 dollars, with add-ons extra. Appraisals often run about 350 to 700 dollars and can be higher for large, historic, or unique properties.
Older housing and historic properties in Richmond may lengthen both inspection and appraisal timelines. Unique homes can require specialty trades or broader comparable sales analysis.
Richmond issues to plan for
Older and historic homes
Neighborhoods like The Fan, Church Hill, Jackson Ward, and Oregon Hill have many older homes. You may see aging mechanicals, older wiring, and original windows. Inspectors sometimes recommend specialists such as electricians, structural engineers, or chimney professionals for further evaluation.
Historic status does not block inspections or appraisals, but it can affect permitted changes and how buyers view value. Verify permits for renovations through the City of Richmond and keep records for both your inspector and your lender.
Flood zones along the James
Parts of Richmond lie near the James River and tributaries. Lenders may require flood insurance if a home is in a mapped flood zone. You can check the FEMA Flood Map Service Center to understand potential flood risk and insurance needs.
Termites and WDI
Virginia’s climate supports termites and other wood-destroying insects. WDI inspections are common and are sometimes required by lenders. Termite damage can affect inspection findings and may be noted by appraisers when it impacts marketability or condition.
What to do after results
If the inspection finds issues
You have options, depending on your contract:
- Ask the seller to make repairs before closing. Request licensed trades, permits if required, and a re-inspection.
- Request a credit at closing or a price reduction to offset costs.
- Split repair costs with the seller.
- Cancel the contract if your contingency allows and the defects are major. Review your contract and consult your agent or an attorney for specifics.
If the appraisal comes in low
Several paths are common:
- Bring additional cash to cover the gap between the appraised value and your contract price.
- Renegotiate the price with the seller.
- Ask for a Reconsideration of Value through your lender with better comparable sales.
- In some cases, the lender may order a review or second appraisal.
- If you have an appraisal contingency and no agreement is reached, you may cancel under the contract terms.
For FHA or VA loans, required repairs under HUD or VA rules may need to be completed or escrowed before closing, even if the value is sufficient.
Coordinating both
Inspection results often drive repair talks first. The appraisal then confirms the loan size. Coordinate timelines with your lender so any repairs and re-inspections are completed before final underwriting.
Checklists for buyers
Before inspection day
- Share seller disclosures, renovation receipts, and permit records with your inspector.
- Budget for and schedule specialty inspections if needed: radon, WDI/termite, sewer scope, chimney, HVAC, foundation, mold, well, or septic.
- Attend the inspection if possible to learn about the home’s systems and maintenance needs.
What to send the appraiser through your lender
- A list of recent improvements with receipts and permits.
- Factual notes on unique features and neighborhood updates.
- Recent comparable sales your agent believes are relevant.
Smart questions to ask
Ask your inspector
- Which items are safety issues versus maintenance?
- What needs immediate repair and what can wait?
- Do you recommend a specialist for any concern?
- What are your re-inspection policies and fees?
Ask your lender or agent about appraisals
- Which appraisal form and scope will be used for my loan type? Guidance for forms is available from Fannie Mae and Freddie Mac.
- How will unique or historic features be handled if comps are limited?
- What are my options if value comes in low, including ROV or seller concessions?
Local resources
- Appraiser licensing and oversight: Virginia DPOR
- Permits, historic districts, and floodplain info: City of Richmond
- Flood maps and insurance basics: FEMA Flood Map Service Center
- Inspection standards: InterNACHI SOP, ASHI SOP
- Appraisal standards and USPAP: The Appraisal Foundation
- FHA and VA guidance: HUD FHA property standards, VA Home Loans
Final thoughts
Here is the bottom line. The appraisal protects the lender by confirming value. The inspection protects you by revealing the home’s condition. In Richmond, older and historic properties, floodplain questions, and termite risk make good coordination essential.
If you want calm, step-by-step guidance from contract to closing, reach out to Hank Cosby. You will get clear advice, local perspective, and hands-on help coordinating inspectors, lenders, and repairs so you move forward with confidence.
FAQs
What is the difference between an appraisal and an inspection?
- An appraisal is a lender-ordered opinion of market value, while an inspection is a buyer-ordered review of the home’s condition and safety at the time of inspection.
When should I schedule my Richmond home inspection?
- Typically within 1 to 7 days after ratifying your contract, depending on your inspection contingency and inspector availability.
What happens if my appraisal is lower than my offer price?
- You can bring extra cash, renegotiate price, request a Reconsideration of Value through your lender, seek a review appraisal, or cancel if your contract allows.
Do FHA or VA loans change the appraisal process?
- Yes. FHA and VA appraisals include property condition checks, and required repairs may need completion or escrow before closing even if value is acceptable.
How do Richmond flood zones affect buying a home?
- Homes in mapped flood zones may require flood insurance, which affects costs and marketability; check the FEMA Flood Map Service Center early in your due diligence.
Who oversees appraiser and inspector standards in Virginia?
- Appraisers are licensed and overseen by Virginia DPOR; inspectors follow standards from InterNACHI or ASHI.
