Home Value: Understanding the Difference between an Appraisal and an Inspection

By Gabriel Traverso
Home Worth Columnist

Send to a Friend | Printable Version

Appraisals and inspections are services normally required in the process of selling your home. An appraisal will document how much your house is worth, but you will likely find that your buyer will also want an inspection. This is because an inspection helps prevent the buyer from making a costly mistake.

If you plan to sell your home, consider getting an appraisal in order to get an accurate idea of what your house is worth. An appraisal will give you a more accurate home value estimate than a comparative market analysis, and may help you pinpoint a good selling price. Asking the right price can help your home sell faster so you don't have to watch it sit on the real estate market for longer than necessary.

You Know How Much Your Home is Worth--Why the Inspection?

The inspection is designed to protect the buyer. While the appraisal provides a home value estimate, the inspection checks for any damage or defects that could bring the home's value down. In different areas, it is customary for either the buyer or seller to pay for and arrange for the inspection in order to verify that your home is free from major defects.

What Does the Inspector Look For?

In a typical home inspection the buyer or buyer's agent has the option of being present along with the home inspection professional. This way the buyer has the opportunity to ask questions and understand the process. A typical inspection will involve the following:

• Looking for structural and mechanical defects in the property.
• Examination of heating, air conditioning, electrical, and plumbing.
• Checking the exterior of the home: foundation, chimney, and roof.
• Verifying the home is properly insulated and vented.
• Appliances and plumbing will be tested to ensure proper working order.
• Bathrooms will be checked for moisture damage.
• The presence or damage from pests, such as termites will be looked for.

This process doesn't have to be confusing and it helps to know what to expect. Make sure to check with your real estate agent. His or her job is to answer your questions and guide you through the selling process.

About the Author
Gabriel Traverso is a freelance writer, independent musician and artist. He resides in Reno, Nevada.