Many people wonder about the difference between a property appraisal and an inspection, and how each is used during the home buying process.

An appraisal is a formal assessment of the value of a home or property. When you are seeking financing, the lender usually requires an appraisal to ascertain the value of the property in order to make sure the loan amount does not exceed the value of the property being sold.

An inspection is an assessment of the systems and structural integrity of the property. It’s normally ordered and paid for by the buyer at the time of inspection to find any hidden problems with the property. An inspection is often written into the Purchase and Sale Agreement as a condition of the sale.

When you’re thinking about making a move, the first steps in the home buying process are:

* Deciding when you want to make your move
* Considering how much money you would like to spend
* Thinking about what type of home you would like
* Deciding where you would like to live

The next step is usually finding out how much you can qualify for and deciding the type of financing that will work best for you.

If you’re in the “thinking about it” stage, you will want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness. You will need to fill out a loan application and go through the lender’s loan approval process at a later date.

When you decide to buy a home, you will want to become pre-approved for a loan prior to beginning your home search. When you are pre-approved, the lender conducts a thorough credit check and verifies your employment and deposit. The lender’s pre-approval is a commitment to loan up to a certain pre-determined amount. The only thing missing is the lender’s appraisal of the home to confirm its value.

Why is pre-approval important at the beginning of the home buying process?

Pre-approval strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question.

To “close” the deal when you’re buying a home, your lender will require you to obtain homeowners insurance on the property–enough to cover the loss in case of severe damage.

Discuss your needs with your insurance agent before you buy. Consider these points:

* Because you must purchase enough insurance to cover the loss of your home in a natural disaster, make sure you have your home’s value updated periodically.
* If you have a home office with others working for you, ask about a rider to cover injuries to those employees.
* Expensive jewelry, artwork, or antique furniture may require a special rider to cover their replacement cost. Have them appraised and photographed to document their value.

Protecting your real estate investment is an important responsibility of home ownership.

You have to make sure that your home is the safe haven you want it to be. Your home’s age and design; amenities such as whirlpool tubs, fireplaces, and decks; and the physical condition of the people living with you may require some modifications to make sure everyone stays safe and happy.

Here is a checklist of safety items that no home should be without:

* Smoke alarms  
* Carbon monoxide alarm
* Ground fault circuit interrupters (GFCI)
* Fire extinguishers
* Flashlights and batteries
* Listed emergency numbers
* Tags on shutoff valves
* Handrails on stairways
* Adequate lighting
* First aid kit

You should also inspect your home regularly to catch potential problems in their early stages. Always read warning labels and user manuals and file them where they can be found quickly. Finally, make sure that your family has an emergency evacuation plan that everyone knows.

Having an open house is a time-tested way to generate interest and exposure for your property.

Here are a few tips to make your open house more effective:

* Look in your local newspaper to see which is the most popular day to schedule an open house.
* Publicize your open house at least a week in advance.
* Restrict your open house hours to reduce the stress of waiting for visitors and to enhance the odds that several parties will visit simultaneously. This may seem hectic, but it increases the sales atmosphere and creates interest and urgency as people see others looking at your house at the same time.
* Place directional signs at strategic locations three to four blocks away to guide people to your open house.
* Leave space in front of your home for visitors to park.
* Place flyers or brochures describing your home in the entry area.
* Let visitors tour your home with as much privacy as possible.
* Realize that most visitors will not seem interested in your home. Buyers will be comparison shopping several open houses the same day.
* If someone does make an offer, ask the person to put it in writing and to include an earnest money deposit. Be prepared to pay a real estate attorney to review the legalities of such a contract.

Whether you live in a condominium or a single-family house, landscaping can certainly make your home easier to sell. But will attractive landscaping add value? It depends.

Potted plants, freshly edged green lawn, and weed-free garden areas will make your home more attractive and appealing. The more appealing the home or condo, the more marketable it is and the faster it will sell.

Well-manicured landscaping helps frame other elements of curb appeal. It is considered a value-added feature because it helps create a positive first impression. Most buyers, however, will not pay extra for trees and lawn, flowers and shrubs.

But you can almost always get a return on your investment in decks and patios. As decks have become more desirable, their resale value has continued to increase.

In the yard and garden of your single-family home or in pots on your condo deck or patio, use plants, trees, and other landscaping elements freely to make your home more appealing and help you sell it more quickly when the time is right.