To Appraise or Not To Appraise Before Listing Your Home?

Trying to get your house ready for the real estate market?

You may have heard that getting an appraisal prior to going on the market is a good idea. Here are the pros and cons of getting an appraisal before listing.

An appraiser working for you, the home owner, is coming at the whole picture differently than an appraiser working for a mortgage lender. When you go through this process prior to listing it is a financial expense for you. If you have your house on the market an appraisal may be requested from a buyer or if under contract by a buyer’s lender, then it is an expense they incur.

You may want a fuller picture of your home’s value to consider a price point for sale so ordering one prior would make sense but keep in mind that your appraisal, while a tool for the listing price does not equal the sales price. It may not be the only appraisal that is done on your property if the buyer is required to get their own. So what is the right way to proceed? Understand that it is part of marketing your property but not the only factor, know that you are paying for it, and be open to the results once the report is sent. Two appraisers are most likely not going to have the exact same report. This is because appraisers use a series of criteria to determine the value of a home and they may come to their conclusions differently based on how they compare certain factors. An appraiser not as familiar with your neighbourhood may not be weighing the amenities the same, or if inventory is low the comparative analysis may have broader strokes than having like-for-like home comparisons, there are factors that can produce different outcomes and you need to be aware of this. Other considerations taken into account include updates to the main parts of the home and the overall upkeep and maintenance of the home. Knowing that the appraisal report is a good indicator but not the whole picture will help ease any tension as you prepare for the market, provide key information and help you decide your next steps for sale. Things to consider before getting an appraisal prior to listing:

1. Consult with a Real Estate AgentWhen you hire a real estate agent, you can receive extensive support as you prep your residence for an appraisal which may save you a few steps. A real estate agent will examine your residence before an appraisal and offer honest, unbiased home improvement recommendations. In addition, he or she can put you in touch with reliable inspectors to give you a comprehensive appraisal. A real estate agent working for you is your home-selling guide. It is in their best interest as well as yours to present your home in the best light, with the best features, and they are ready to respond to your home selling concerns and questions to ensure you can maximize the value of your residence.
2. Take an Objective View of Your Residence Consider how a homebuyer may see your house. If you take an objective approach to sell your residence, you may be able to identify various problem areas before you list your house. For example, cracked or chipped home siding may seem like a minor issue to you, but this problem can affect how homebuyers perceive your house. Conversely, if you fix cracked or chipped siding before a home appraisal, you can increase the likelihood of a favorable appraisal. Making sure that your appliances are in working order, serviced regularly and have documented maintenance records in order gives credibility to the upkeep of your residence, this includes your garden. Consider seasonal plants in key areas to make your home stand out for curb appeal.
3. Spend Some Time Cleaning Your House A house should be welcoming but not personalized. Keep it neutral but clean and tidy. At the same time, this will uncover areas that you may have forgotten about or overlooked for maintenance. Think like a buyer, and use objective thinking to review the property. If you need extra help with the home cleaning, it certainly pays to hire a professional cleaning company. Ultimately the choice to get an appraisal prior to the market is up to you. The above tips are good for preparing a home for sale regardless of whether you decide to move ahead with an appraisal. As the market changes listen to the experts that are important to you so that you can make the decision that meets your criteria for sale.