While a home appraisal is typically done after an offer on a home is accepted, there can be real benefits to having an appraisal done before listing your home for sale. An appraisal is meant to determine a home’s fair market value by considering the home’s condition, size, location, and features in comparison to recently sold comparable homes in the area. Here are four reasons to consider paying for an appraisal before listing your condo for sale in downtown San Diego.
1. Determine a Listing Price
You don’t want to list your home for too much and risk your listing going stagnant, attracting low-ball offers, or getting no attention at all. On the flip side, you certainly don’t want to leave money on the table by listing your home too low. A pre-listing appraisal can be a valuable tool to make sure your home is priced accurately from the beginning. According to the National Association of Realtors, more than 15 percent of home sales are renegotiated, delayed, or even canceled because a home appraisal comes back lower than the contract price. Appraising your home before you sell can help you avoid this pitfall.
2. Gain a Professional Opinion from a Neutral Party
While real estate agents can give you different market values for your home, a home appraisal by a professional licensed appraiser can give you valuable insight into your home’s value from a neutral third party, which makes it different than a comparative market analysis (CMA) performed by real estate agents who will benefit if you decide to hire them to list your home. An appraiser’s report offers a completely professional and unbiased opinion on your home’s value, with no financial incentive affecting the appraisal amount.
3. Get Ideas for Boosting Your Home’s Value
Your appraisal report will compare your home to recently sold homes that are most comparable to yours, which gives you the opportunity to see how your home stacks up and areas you can improve to increase your home’s value and appeal. For example, if the comparables the appraiser used have more modern kitchens, you may decide to invest some money in minor kitchen upgrades.
4. Use as a Negotiating Tool
The appraiser’s report gives you the facts you need about your home and the local market. You can use this information to determine a fair asking price. In a weaker market, the report can be used to address items you think were missed, and it can add value for buyers by giving them peace of mind. During negotiations, the appraisal can help you support your pricing position. If the lender’s appraisal comes in lower than the one you received, you can use your independent appraisal to support the buyer in requesting the lender get a second appraisal or a review of the low appraisal report.
Getting a home appraisal prior to selling is one of the smartest moves a homeowner can make. It’s also a great idea to hire experienced agents who have thorough knowledge about pricing real estate in downtown San Diego. Rely on the experts at 92101 Urban Living to help you sell your home for the highest price and in the shortest time. Reach out to one of our friendly agents today at 619-649-0368.