Who orders the home inspection in Massachusetts?

The buyer typically orders and pays for the home inspection to evaluate the physical condition of the property. Under the 2025 Affordable Homes Act, buyers in MA have a protected right to this inspection.

Who orders the home appraisal in MA?

The lender (bank) orders the appraisal to confirm the home's market value, though the buyer usually pays the fee as part of their closing costs.

Can a low appraisal stop a home sale?

Yes. If a home appraises for less than the purchase price, the lender may refuse to fund the full loan amount, requiring the buyer to pay the difference in cash or the seller to lower the price.

Appraisal vs. Inspection: What’s the Difference and Why It Matters

by Jim Armstrong

When buying or selling a home in Massachusetts, you’ll hear two terms constantly: Appraisal and Inspection. While they sound similar, they have completely different purposes, and confusing them could cost you thousands or even derail your closing.

As of late 2025, Massachusetts law regarding home inspections has changed significantly, making it more important than ever to understand your rights.

Here is the simple breakdown of the differences, who pays for what, and why they both matter.

1. The Home Inspection: "What is the condition?"

A home inspection is a deep dive into the physical health of the property. Think of it like a "medical checkup" for the house.

Who orders it? The Buyer.
Who pays? The Buyer (typically $400–$800).
The Goal: To find out if the roof is leaking, the electrical is safe, or the foundation is cracking.
The Impact: Results are used for negotiation. If the inspector finds a $10,000 problem, the buyer might ask the seller to fix it or lower the price.

Important MA Law Update (October 2025): Under the Affordable Homes Act, Massachusetts sellers can no longer require buyers to waive their inspection to get an offer accepted. Sellers must provide a mandatory disclosure affirming the buyer's right to an inspection.

2. The Home Appraisal: "What is the value?"

A home appraisal is an objective estimate of what the home is worth in the current market. It is primarily for the benefit of the lender (the bank).

Who orders it? The Lender (Bank).
Who pays? The Buyer (usually included in closing costs, $500–$700).
The Goal: To ensure the bank isn't lending $600,000 for a house that is only worth $550,000.
The Impact: It determines financing. If the appraisal comes in lower than the agreed-upon price (an "appraisal gap"), the buyer may need to pay the difference in cash, or the seller may need to lower the price to keep the deal alive.

Comparison at a Glance

Feature	Home Inspection	Home Appraisal
Primary Focus	Safety, Structure, Systems	Market Value & Comps
Ordered By	Buyer	Lender (Bank)
Is it Required?	Optional (but highly recommended)	Mandatory for most mortgages
Can it stop a sale?	Yes, if the buyer backs out	Yes, if the bank denies the loan
Who sees the report?	The Buyer	The Lender & the Buyer

How They Impact Your Sale

In Massachusetts, the inspection usually happens first, shortly after the offer is accepted. If the buyer is happy with the condition, the lender then orders the appraisal to finalize the loan.

If the inspection is bad: The deal might go back to the drawing board for repairs or price credits.
If the appraisal is low: The "deal" is fine, but the "money" is the problem. The buyer and seller must decide who is covering the gap.

Need a Custom Estimate?

Understanding these costs is the first step to a successful sale. If you're planning to sell and want to see a full breakdown of your potential proceeds after all fees, contact an Armstrong Field Group REALTOR.