How Do Home Appraisals Work?

Getting a proper home appraisal works for both buyers and sellers. For sellers, having a good home appraisal ensures that they get the right price for their home, selling it quickly and for a fair value. For buyers, getting a proper home appraisal means not spending too much for a home.

Is a home inspection the same as a home appraisal?

No, although they are close. A home inspector tests heating, air conditioning, plumbing and wiring. Home appraisers make notes on these but do not professionally test them. Also, with a negative home inspection, a home inspector can actually remove a home from the market.

Does having a clean home improve the home's appraisal of value?

Home appraisers can see through simple cosmetic changes. A pile of dirty dishes or a new set of curtains does not change a home appraisal. However, repainting a room or adding new flooring can change the value of a home, sometimes significantly. Landscaping can also alter the looks and assessment of a home.

Is a home appraisal necessary for selling?

It is not necessary, but that choice is a double-edged sword. Any savvy buyer would insist on a home appraisal. Also, even if the buyer does not, any lending bank would want to make sure a mortgage is not upside-down from the start. Not allowing a home appraisal looks suspicious.

Should a person get a home appraisal if he or she is not thinking about buying?

Sometimes getting a home appraisal tells a homeowner what needs work on his or her home to increase its value, either for equity purposes or tax reasons. Often, home improvement costs can offer significant tax incentives.

Getting a home appraisal helps even if a homeowner is not selling a home, so making this small investment can save a significant amount of money.