An appraisal and a home inspection have some similarities. Both services ensure that your property will meet certain, basic criteria. However, they are two distinct functions in a real estate transaction.

Let's start with the appraisal. The appraisal assures the market value for the buyer and the lender. It is usually ordered and required by your 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, lot size, improvements, location and the recent sales of any comparable homes.

The home inspection is different in that it focuses on the physical elements of the property and doesn't consider the value or the potential value. 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 necessarily include a termite inspection. This is a separate inspection. It is required by most lenders and is performed by a qualified professional.

Often the seller will call for an appraisal in order to assist with proper pricing of a home. But the inspection process is the buyer's option. The cost is minimal and you'll have a blueprint of your home's major components, along with estimates on their lifespan and maintenance scheduling.

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