5 Reasons You Don’t Want a Pre-Listing Appraisal
- February 21st, 2016
- Matt Frentheway
- No comments
When listing a home for sale, it’s a common misconception that getting an appraisal before listing isn’t necessary. Sometimes this is due to a lack of knowledge and other times, the following reasons seem to make sense:
1. The tax records for my home already lists an appraised value.
While this is a true statement, tax assessors do not arrive at home value the same way real estate appraisers do. The square footage on tax records is often estimated and also often don’t include renovations and additions made to the property. This can be a very inaccurate calculation of market value.
2. My REALTOR® will determine the list price.
The REALTOR® is definitely an important part of your process, however, most real estate companies use tax records to estimate market value, which we’ve already shown you is not always accurate.
3. I had my home appraised last year when I bought it.
Never before in history has the real estate market fluctuated so rapidly. 50 years ago, a person could possibly use an appraisal report for several years, but today, an appraisal from even a year ago can be completely obsolete.
4. I will test the market to see if anyone “bites.”
If you are ready to sell, this idea can cause you some headache. If you are over-price, your house could stay on the market indefinitely. Real estate that stays on the market for a long period of time becomes less attractive to prospective buyers.
5. I will use an average of the selling prices in my neighborhood.
Area market is definitely a deciding factor in any appraisal, but it is only one aspect of price. Square footage, acreage, additions and upgrades also play huge parts in determining market value.
Getting a pre-listing appraisal is vital to selling your home quickly and for the best price. Deciding to forgo this investment can lead to too many delays and inaccurate profits. This small investment up front will save you time and ensure your transaction goes smoothly.