BLOG

When you decide to list your house for sale, there are several things you need to do and decide – and probably the toughest could be finalizing the price you want to ask for it. Getting an appraisal performed before the listing is a wise decision, as it’s an impartial, meticulous examination of your house, conducted by an experienced professional. They will check the important features like structure, foundation, roof, ceiling, floor, plumbing and electrical systems, appliances and equipment, garage, kitchen, bathrooms, and of course the total area in square feet. Your property will also be compared to similar properties that were sold in the recent past in your general neighborhood.

So why exactly should you do this?

1. You will know the proper value: As a homeowner, you’re likely to be sentimental about your home, and would not be willing to part with it except for a high price. You may also think that the interiors and equipment you have, deserves to fetch you a higher price, but it may not be a huge deal in your area. The opposite could also be true – you may not realize the actual value, and have priced it low. An appraisal can save you from over or underpricing your home.
2. To know the correct value of additions and renovations: you may have spent top dollar on redoing your kitchen or bathrooms, foundation repair, or new HVAC systems. You can’t hope to recover everything you’ve spent. You’re likely to recover only that much what it would be worth to the new owner. And only an appraiser would be able to decide this figure.
3. Your home does not ‘fit in’: Every neighborhood has a ‘typical’ home, in terms of size; specifically, square footage. If your home doesn’t fall in that category, the appraiser may use a per square foot price that is more appropriate than what is prevailing in your neighborhood.
4. There are no ‘comps’: Comps are comparable properties in the neighborhood that were sold recently; any seller, and also appraiser, consider these to arrive at the most likely market value of a house. It could happen that when you’ve listed your house, there are no such comps available. A professional and experienced appraiser however, will know which other neighborhoods they can look at for finding comps, so as to arrive at an appraisal value.
5. It’s a great negotiating tool: If a potential buyer is trying to low-ball you, you can show the appraisal report to convince them of the true value, and change their opinion. After all, an appraisal is conducted by a professional who has no bias in the matter.