APPRAISALS AND INSPECTIONS

An appraisal and a home inspection have some similarities, but they are two distinct functions in a real estate transaction. The services provided by an appraiser and a home inspector ensure that your property meets certain, basic criteria. The appraisal assures the market value for the buyer and the lender. The home inspection focuses on the physical elements of the property and doesn't consider the value or the potential value.

An appraisal is usually ordered and required by a lender to estimate the value of a property to ensure that the house is marketable in the event the buyer should default on the loan. An appraisal considers the age of the home, its condition, floor plan, amenities, square footage, the size of the lot, improvements, location and the recent sales of any comparable homes.

The home inspection identifies items that need to be repaired or replaced and estimates the useful life of major systems, equipment, the structure itself and the finishes. The inspection doesn't comment on or ascertain cosmetic imperfections, nor does it assign a value to the property or any of its elements. A home inspection does not include a termite inspection. This inspection is required by most lenders and is performed by a qualified professional. Having a professional home inspection before you list your property can give you an unbiased evaluation of its physical condition and clue you in as to recommended repairs and necessary updates. By tending to these matters before your home goes on the market you can avoid problems, disputes and/or delays later. If your home is pre-inspected, the buyer may want to order and pay for an additional inspection, which is the buyer's privilege. Your real estate professional can help you decide if an appraisal or home inspection would be helpful before you list your property.