Seller Information

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 If you’re preparing to sell your home, chances are you’ve heard about both an appraisal and a home inspection — and you might even hear people use those terms interchangeably.

But while they’re both important parts of a real estate transaction, they serve very different purposes and involve two completely separate professionals.

Here’s how to tell them apart — and why understanding the difference can help your sale go more smoothly.

Purpose: To determine the fair market value of your home.

The appraiser works on behalf of the buyer’s lender — not the buyer or seller — to make sure the loan amount lines up with what the home is worth.

An appraiser looks at:

• Recent comparable sales (“comps”) in the area
   
• Your home’s size, condition, and features
   
• Location and neighborhood trends
   
• Market activity and demand
   

The appraiser’s goal isn’t to inspect for defects, but to assign a value the bank can lend against.

If the home appraises lower than the agreed price, the lender may limit what they’ll finance — which can trigger renegotiation.

💡 Tip for Sellers: Pricing your home correctly from the start helps avoid appraisal issues later. A solid CMA (Comparative Market Analysis) gives you a realistic value range based on true local data.

Purpose: To evaluate the condition of the home.

A home inspector works for the buyer (or sometimes the seller, if you opt for a pre-listing inspection). Their job is to identify visible issues that may need repair or replacement — not to assign value.

They’ll examine:

• Roof, foundation, plumbing, and electrical systems
   
• Heating and cooling systems
   
• Doors, windows, and insulation
   
• Safety concerns or signs of deferred maintenance
   

The inspector provides a detailed report, which the buyer can use to request repairs or negotiate credits.

🧰 Tip for Sellers: Addressing small issues before listing — like leaky faucets or loose handrails — can prevent them from showing up on the inspection report and becoming deal hurdles.

Think of it this way:

• The inspection protects the buyer’s investment.
   
• The appraisal protects the lender’s investment.
   

Both are standard parts of a sale, and both give different types of assurance about the home.

Understanding this distinction helps you stay calm and confident when those appointments are scheduled — and know what’s really being evaluated.

Download our free Home Inspection Reality Checklist to see what inspectors look for most often — and how to make your home shine before they arrive.

👉 [Get the Checklist]