The age-old debate, at least for realtors and appraisers, is whether you should get a pre-listing appraisal. The answer is not always simple and depends on what you are trying to accomplish. I think Realtors and appraisers both agree that an appraisal isn’t needed for every occasion. For example, when dealing with a tract home in a subdivision with plenty of sales that have very little variation, there is little that the homeowner can gain from ordering an appraisal. Due to the lack of variation, the sale price of a similar property that has sold is usually a good indicator of value with little interpretation needed. In this case, an agent is qualified to determine a list price on their own. However, there are times that it can be beneficial to both the realtor and the homeowner to order an appraisal.
- Measuring homes can be very complicated, and appraisers have the tools, technology, and training to provide you with accurate square footage. With square footage being a large determining factor in a home’s value, we can give you the tools you need to accurately price the property.
- Most lenders require an appraisal before allowing buyers to close on a home. In order to protect their investment, lenders want to ensure they’re not giving a buyer more money than the home is worth. If an appraisal comes back significantly lower than the offer price, the mortgage company will likely only cover the appraised amount. Unless the buyer can cover the difference, the home sale may fall through, and you may need to re-list your home and start the selling process from scratch. Getting a pre-listing appraisal can save you from being surprised after you accept an offer.
- At times, people too close to the situation just need a reality check. Real estate can be very personal to some sellers, and can have an over-inflated sense of their property’s worth. Growing up in a home or pouring blood, sweat, and tears into a renovation can create a sentimental value that unfortunately doesn’t translate into how the market sees the home. The reality is buyers are looking to create their own memories and have multiple houses to choose from to do that. Having an appraiser provide you with an unbiased look at the property can help cut down on marketing time.