Pricing is one of the most important elements in selling your house. Some owners wonder if it’s best to pay for a professional appraisal before listing their house. While determining the market value of your house is crucial in order to price your house at the best price, the market value doesn’t always have to come from an appraiser. For professional advice about pre-listing appraisals, contact The Donnelly Group for honest, accurate information.
Pros of Pre-Listing Appraisals
The main benefit of paying for a pre-listing appraisal is getting an accurate gauge of how much your house is currently worth. This information can help you decide your all-important listing price, as well as measure how much a repair or renovation could boost the asking price. Listing your house too low will lose you money, but listing too high could make it sit on the market – ultimately costing you money. Appraisals are one way to ensure you’re pricing your house correctly for the market, based on home sales in the area.
Cons of Pre-Listing Appraisals
While some people believe appraisers are “objective” third parties to price your house, this is not always the case. An appraisal is ultimately one person’s opinion of value and can vary depending on the appraiser’s own experience. It is the market that will determine the value of your house, not necessarily what the appraiser quotes you.
The biggest reason to decide against a pre-listing appraisal is that it costs money. Your real estate agent has access to the same information the appraiser uses and can provide an estimate to help you price your house accordingly. Another important consideration is that if there are any material defects uncovered, during the appraisal process, you are required by law to disclose these defects to any potential buyers.
It makes no difference to the Buyer whether you get your house appraised. Why? Buyers will often negotiate price based on what they are willing to spend, regardless of your appraisal estimate. In addition, the Buyer will most likely depend on their agent to help them determine the best offer for the home. In most cases, the Buyer’s lender will also require their own independent appraisal as part of the loan process.
The Donnelly Group is devoted to serving your needs with honesty, integrity and ethical behavior at all times, in everything we do.
Don’t forget to check out our latest guide: 10 Ways To Sell Your Home Quickly