Home Appraisals 101: What Every Seller Needs to Understand

Home appraisal tips for sellers looking to sell their houses.

Thinking about selling your house? You might be wondering if getting an appraisal is necessary. To help with this, I’m covering everything you need to know about appraisals and whether you should consider one before selling your home.

An appraisal is an opinion of the value of a property, typically done for the buyer’s lender. If someone is buying your house and obtaining a loan, the bank will want to ensure that they are lending against a solid asset. To do this, they’ll hire a third-party independent appraiser.

Having an appraisal done on your property before listing it and passing it along to the buyer usually won’t work. The most cost-efficient and common approach is to rely on real estate brokers’ expertise. Hire experienced brokers who know your neighborhood well and can provide you with a comparative market analysis (CMA). A CMA will give you an accurate estimate of your home’s worth based on recent sales and market trends.

“Rely on reputable real estate brokers who possess a strong track record in the industry and your local market.”

One crucial aspect to understand is the concept of an “appraisal gap.” This occurs when a buyer is willing to pay more than the appraiser’s valuation of the home. Such situations often arise when there are multiple offers on a property, and a buyer escalates their bid significantly above the asking price.

Now, the question remains: Should you get an appraisal on your property before listing it? Generally, the answer is no. An appraisal is an unnecessary expense for a seller. Buyers typically bear this cost as their lenders require an appraisal to ensure the property’s value before approving a loan. In your case, the only reason to get an appraisal would be if you want to verify the value independently.

To accurately determine the value of your home, rely on reputable real estate brokers who possess a strong track record in the industry and your local market. We can guide you through the selling process and provide valuable insights on pricing your home competitively.

If you have any more questions about the home selling process or appraisals, or simply want to know the value of your home, feel free to contact me by phone call or email. Selling a house can be a significant decision, and having the right information is crucial to make the best choices for your real estate journey.