Pre-Listing Appraisal Can Open The Door To A Fast Home Sale

As real estate markets are adjusting around the nation--often more to the buyer's advantage--home sellers are increasingly ordering appraisals before putting their homes on the market. Paying $300 to $400 to have a home appraised prior to listing can be a very effective sales strategy.

Of course, we always provide a detailed competitive market analysis to help our clients pick the right listing price--one that will get their homes sold for as much as possible and within the desired time frame. Our analysis takes into consideration many of the same factors appraisers look at when evaluating the worth of a property.

Unfortunately, in these changing times, a price pegged to the current market isn't always as high as sellers hope for. That's one reason why some sellers are seeking a paid valuation from appraisers--professionals who specialize in providing independent and unbiased valuations based on current market conditions.

Besides confirming the right price at which to list a property, sellers who have an appraisal in hand can use it as a sales tool. First, they can refer to the appraisal to reinforce their asking price.

Second, buyers will be more comfortable making an offer on an already appraised home as compared with other homes that lack an appraisal. The appraisal can help assure buyers they're not paying too much--especially important in changing markets.

If the sales price tracks with the appraisal, both buyer and seller can reasonably expect that the buyer's lender (who will no doubt order another appraisal) will support financing for the agreed-upon price.

Finally, even if sellers choose not to share their appraisal with buyers, they can use information in it to increase the value of the home. For example, if the appraiser rates the home's condition as "poor" or "fair," rather than "good," the seller can take steps to improve the home's condition in order to justify a higher list price.