One of the most important things you to do to help ensure your success when selling a home is to make sure you set the asking price correctly from the start. You want to make sure you won’t have to lower the price to catch the attention of potential buyers. Pricing your home too high can cause it to sit on the market longer than necessary and buyers begin to lose interest. Price your home too low and you can lose money on your investment. One tool that can help you come up with an accurate idea of your home’s value is a pre-appraisal.
Why Get a Pre-Appraisal Before Listing?
It’s a good idea to start your research on your home’s value with an online home valuation calculator. This tool gives you a general idea of the value when you input some basic information. Next, speak with your real estate agent to get a more comprehensive report that factors in market trends, other homes sold in the area, and upgrades you’ve made to the property. After that part of the process, hire an independent appraiser to conduct a pre-appraisal on your home.
Getting a pre-appraisal is a good idea because the review of your home is objective. There are times when a seller can get caught up in the emotion’s involved in the sale and get an inflated idea of what the property is worth. A pre-appraisal gives you information without emotion, so you can make a logical choice when setting the asking price.
What is a Pre-Appraisal?
A pre-appraisal is conducted by a licensed appraiser who is trained to compare different factors to decide how much a property is worth in the current market. Things they consider include:
- Square Footage of the Home
- Property Condition
- Acres Included
- Market Area
Your home may be worth more than you think. If your home is located in a neighborhood that is comprised of mainly homes with 3 bedrooms, even though the other factors are the same, your 4-bedroom home may be worth more considering the additional bedroom.
What Happens During a Pre-Appraisal?
The appraiser will collect information on the different factors used to make an accurate appraisal. They will walk through your home to see the condition of the property. The appraiser may point out the things that need attention or impact the value of your home. It’s a smart idea to listen carefully and made needed adjustments.
Once the appraisal is complete, you’ll receive a report with the details. This report can be a powerful tool when it comes to showing potential buyers that you’ve set the asking price based on accurate information that was supplied by a professional appraiser.
How Do I Choose an Appraiser?
An appraiser is not a home inspector, but they do need to understand certain building and property expectations to do their job. You want someone who communicates well and is a professional when it comes to timeliness, security, privacy, and accuracy.
- Choose an appraiser who specializes in residential appraisals.
- Check reviews and recommendations.
- Conduct an interview and ask questions.
- Check licenses and certifications.
How Can a Real Estate Agent Help?
Your real estate agent has experience in working with various appraisers. Check with them to see if they have recommended vendors that they have positive experiences with in past transactions.
Once your appraisal arrives, your real estate agent can help you understand the report and explain any terms that are unfamiliar to you. They can help you understand what the results mean for your asking price, and they can advise you on ways to increase the value of your home, if that is needed.