Is a Pre-Listing Appraisal Worth It?
Is a Pre-Listing Appraisal Worth It? The quick answer is maybe. A pre-listing appraisal is ordered by a homeowner before listing their house for sale. The appraiser will exam the property’s condition and quality, measure and calculate the gross living area, and take into account recent improvements. The appraiser will then compare your property to similar properties nearby that were recently sold and analyze market data to determine a fair market value for your house.
Provide a Reality Check
Your emotional investment may alter your perception of the value of your property. As a homeowner, you may also overestimate your return on investment for upgrades and renovations. The expert opinion of a neutral third-party as to the market value of your property can provide a needed reality check.
Offer reassurance that you chose a competitive listing price. A pre-listing appraisal can help you feel confident that you chose a listing price that may help your home not sit on the market too long.
Support your position during sales negotiations. A pre-listing appraisal is an objective, third-party assessment of your property’s value. It can be a powerful negotiation tool during the sales process.
Verify Square Footage
Due to liability issues, most realtors do not measure homes. Instead, realtors typically use appraisal district records to determine the square footage of your home for listing purposes. However, the appraisal district may have the incorrect square footage listed for your property since they do not enter the house to measure the property. This error could result in you listing your home as larger or smaller than it is which could lead to issues during the sales process.
What a pre-listing appraisal can’t do.
Remove the need for the buyer’s lender to obtain an appraisal. A pre-listing appraisal is not transferable to the buyer. Since the property is the collateral for the loan that the bank is considering extending to the buyer, the lender will require another appraisal for the loan process.
Guarantee that your house will sell for the appraised value. A pre-listing appraisal is an opinion of value at a specific point of time. Sellers consider a multitude of factors when making an offer. While a pre-listing appraisal can be a valuable part of the listing process, it cannot guarantee that the seller will receive an offer that equals the appraised value.
While a pre-listing appraisal is not required to list your house, it may be a worthwhile investment. With over 25 years of experience appraising residential real estate in the Dallas Fort Worth area, Stafford Appraisals is uniquely qualified to provide you with a pre-listing appraisal.
Pre-listing appraisals through Stafford Appraisals typically start at $500. If you only need to verify the square footage of your property and do not need an opinion of value, Stafford Appraisals also offers sketch services that start at $150.
Stafford Appraisals, offering Home Appraisals in Frisco Texas is owned and operated by Jim Stafford. Jim is a third-generation appraiser with over 25 years of experience appraising homes in the Dallas Fort Worth area.
Note: All prices are dependent upon complexity and requested turnaround time. Contact Stafford Appraisals for a quote.
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