A lot goes into selling a home, but one of the first questions many owners ask themselves before placing their home on the market is how to price their property. One of the most effective ways owners can set a price is by having their home appraised to determine the market value of their property. Hiring a professional to appraise a home can help owners avoid pricing their houses too high or low, and turning off potential buyers.
Find a qualified appraiser
Homeowners can contact an appraisal management company to send out a qualified appraiser to assess the value of a home. However, sellers should specify that they prefer an appraiser who is familiar with the local market, according to AOL Real Estate. While a professional will focus primarily on the home, its features and any flaws or needed repairs it needs, it can be to a homeowner’s benefit to have an appraiser that knows what the homes in a town or surrounding neighborhood are going for.
Home values can vary greatly by community, so homeowners should take the appraiser’s opinion as well as the market forces in their particular neighborhood into consideration when setting a fair price. A real estate agent can guide you through this process.
Prepare in advance for the appraiser’s visit
The appraisal process is similar to that of a home inspection. The professional will need access to every area of the home to pinpoint high-value features, potential issues with the house and other factors that will drive its overall value. For this reason, it’s important to declutter the home and make it easier for a professional to work.
In addition, curb appeal might affect an appraiser’s assessment, so it’s also important to tend to the outside of the home. A well-manicured lawn, trimmed trees and bushes and a flower bed that has been well cared for can have the same positive effect on an appraisal as it does for potential buyers. In addition, it can be helpful to have a list of recent improvements, upgrades, renovations and other updates that have been made to the home since it was first purchased.
Lastly, keep in mind that an appraiser’s assessment should be used a guide for setting the home price, not a concrete figure. In special circumstances, home sellers may ask for a higher or lower price, and it’s important that they take a variety of factors into consideration when putting their home on the market.
[…] How to Price Your Home for Sale […]
What????? Why would a Seller want to hire an appraiser instead of having a competent Coldwell Banker agent provide them with a market analysis?
Thanks for stopping by. As mentioned above, an appraiser and a real estate agent are both needed for guidance.
When discussing appraisers with a seller, it is important to note that appraisals can take place for three very different needs: for a home purchase (tied to a contract of sale, typically closest to “fair market value”; for insurance purposes (often higher than FMV); and for a mortgage refinance (many times quite conservative relative to FMV). Unless it is a unique property, most sellers are comfortable with a defensive CMA done by a competent agent, rather than pay $500-$600 for an outside opinion.
It’s tough being the seller in a buyer’s market. But you can improve your odds with the right research. In many cases, making a smart deal and getting the best price come down to studying your market and being an educated seller.
Appraisers are so busy with bank appraisals, it’s hard to get an independent appraisal done. There are very few appraisers doing it in my area, and most of them suggest the homeowner get a fair market analysis from a Realtor instead.