I have heard and seen much confusion between these 2 services with my buyers and with questions asked on line.

So I would like to explain the differences between the two services.  After reading this you can see why I recommend still getting the home inspection.  A home inspection in not mandatory an appraisal will be if you will be securing a loan.  However one does NOT take the place of the other.

Many buyers seem to think the appraisal is like a home inspection, especially when they are getting a FHA loan.   

A home appraisal - Is to provide a professional opinion, usually an estimate of market value, to be used in making real estate decisions." Typically, appraisers are employed by lenders to estimate the value of real estate involved in a loan transaction. An appraiser hired by a lender works in the best interest of their client, the lender.

A FHA appraisal - Is more sensitive then a conventional loan appraisal, they will want to make sure  the home is in working order.  However - FHA emphasizes that an appraisal is not a home inspection and it does not guarantee that a home is without flaws. However, FHA does takes steps to try to see that the home is in a safe, sound and sanitary condition. For that reason, the FHA appraiser is expected to require repair or replacement of anything that may affect the safe, sound and sanitary habitation of the house. If repairs are required, the buyer will receive a list from the lender  and the seller (in most cases) may be responsible for seeing that the repairs are taken care of according to set local and FHA guidelines.

A home inspection- is an objective visual examination of the physical structure and systems of a house. Home inspectors are usually employed by the prospective home-buyer. A home inspector hired by a buyer works in the best interest of their client, the home-buyer. An appraisal is not a home inspection and a home inspection is not an appraisal. Keep in mind that the approval / acceptance of a home by a lender is not an endorsement of the home's physical condition.

 So if you are buying a home that states: "AS IS" This does not mean you can not get a home inspection.  Most banks will allow for a period of time for a home inspection.  A few will require the inspection to be done a head of time.  "AS IS" does not mean you can not have a home inspection, it just means they are not going to fix anything.  You still need to educate your self on the condition of the home.  Make sure the home does not have any flaws that you were not aware of or the the appraiser can not see.  "BUYER BEWARE" - do your due diligence!