Pre-Listing Market Valuation Appraisal
Have you been thinking about putting your home up for sale? Do you want to make sure that you price will enable a quick sale? If so, you may want to invest in a pre-listing market valuation appraisal.
If you work with a realtor to sell your home, they will help you price the home. The realtor will do some of the things an appraiser does to pinpoint a smart price, such as comparing it to similar homes and their recent sale prices. Even with a realtor there to help you, though, it can be worthwhile to hire an appraiser for a second opinion.
After all, any appraisal is just an opinion of a home’s market value at a specific moment in time. The realtor’s best guess is also just an opinion of value. Having two views to help you price your home is usually better than one—especially given the importance of pricing in the sale process.
If you are looking to sell your house on your own, without the aid of a realtor, then getting a prelisting market valuation appraisal should be one of your first steps. Even if you want to go the “For Sale by Owner” route, you can still benefit significantly from some professional insight.
The Consequences of Mispricing a Home
Pricing a home is one of the most challenging parts of the listing and selling process. If you price low, you will likely sell your home quickly—and might even have multiple potential buyers! However, you could also end up selling your house for less than it is worth, leaving money on the table that could have gone toward the down payment on your next home.
If you price too high, the consequences tend to be even worse. These days especially, with sophisticated online searching tools, prospective buyers only tend to look at homes that are within their price range. As such, pricing too high might mean that buyers in your area won’t even look at your house. One law of real estate is that the more a home costs, the fewer potential buyers there are. Limiting your pool of prospective buyers through price means that you have to rely more on timing and luck to sell.
Overpricing can sometimes lead to even lower sale prices than you would have gotten if you had listed at a more modest, market-appropriate price. For one thing, the longer your home stays on the market, the longer you have to carry the mortgage payments. Especially if you have already purchased a new home, continuing to pay the mortgage on your old house can quickly drain your finances.
There is also a stigma against houses that have been on the market for a long time. Buyers assume there is something wrong with these properties. And while you can take the house off the market and then re-list it at a lower price, today’s online tools allow buyers to see that history. Dropping the price on your home repeatedly shows potential buyers that you are desperate to sell, which means that they are less likely to give you a full-price offer if they do want to buy your house. You give all the negotiating power away the moment you drop the
listing price on your home.
Avoid Mispricing Your Home with a Pre-Listing Market Valuation Appraisal
Don’t weather the costs and consequences of mispricing your home. For more information please Contact Us, if you are ready to get started please complete our Order an Appraisal form and we will be in touch with you a free Pre-Listing Appraisal quote.