Tip of the Week: Should Sellers Get a Pre-Appraisal on Their Home?
So you've decided to sell your home and you're ready to make the big move. There are a number of steps to take when selling and, probably the most important one is determining the right price. Pricing your home incorrectly could make the difference between your home sitting on the market for months or selling in a reasonable amount of time.
Before we get in too deep on this topic, it's important to realize one important fact:
Buyers are the only people who determine the value of a home.
The seller doesn't determine value.
Your neighbor doesn't determine value.
Your listing agent doesn't determine value.
And, even the appraiser doesn't.
With that being said, the "opinion of value" of a licensed appraiser is the only figure that a bank will use in order to approve a mortgage loan for the home buyer.
Seasoned and reputable Realtors know how to price your home properly, but there are a couple of reasons why hiring an appraiser before you list may be a good idea.
- The agent and the seller don't agree on the list price
- Your property is in an area where there are little to no sales
As sellers, we've all been guilty of thinking that our home is worth more than it really is. The problem comes in when a seller is not willing to budge. A seller may even talk with several different real estate agents and not agree to list at any of their prices.
More often than not, the best reason to hire an appraiser before listing is if your home is located where there aren't any recent comparable sales. In every part of the country, you have urban, suburban, and rural areas. While it's usually fairly simple for a Realtor to find comparable sales in urban and suburban areas, it can be tough to find them in rural areas.
The foundation for this real estate tip is this. You want the most accurate list price in order for you to get the most amount of money from the sale and to keep your home from going stale on the market. So, for example, if you live in a rural area where no homes have sold in years, you could underprice your property, leaving a ton of money on the table for the buyer.
In this case, paying several hundred dollars for a professional appraisal would be worth it.
So your quick Real Estate Tip of the Week:
Use a seasoned Realtor with a track record to help you determine a price unless you and your agent can't agree or if your property is located where there aren't any comparable sales. In these cases, consider hiring a licensed appraiser to give their opinion on value.
Jeff Nelson
eXp Realty Southern Branch
251-654-2523
jeff@livegulfshoreslocal.com
