Pre Listing Appraisal – The Key to Home Selling
In the real estate industry there is very little talk about home owners getting a pre listing appraisal before attempting to sell their house. Most homeowners know what an appraisal is because they had to have one completed when they purchased the home they live in. What is the appraisal process truly about; it’s about trust. The bank appraisal is ordered not for the buyers benefit but for the bank who is lending the money.
Home Selling Process without a Pre Listing Appraisal
When a home owner wants to sell their house, they meet with a realtor who may ask them to paint their living room, repair the deck or fence in the back yard, or install new landscaping. These items could cost around $200 to $400 dollars. I am being kind with the items that a realtor may suggest to change. Then the realtor will present the homeowners with comparable sales. Maybe the homeowner even looks at a free home valuation website. So now the homeowner has a spruced up property and with no formal training in home valuation must set a list price. The bottom line is they still don’t actually know what their house is worth. Moreover, they don’t know where the home is going to appraise should they receive a contract offer.
The Need for a Pre Listing Appraisal
Had the home seller spent the same amount of money on a pre listing appraisal from a certified appraiser they would have had at least had tangible proof in the form of comparable sales that meet Fannie Mae criteria for comparison. More importantly, by using the information contained in the pre listing appraisal, they would have had comparable sales that would defend a listing price.
When the bank appraisal is ordered for any home buyer, the bank appraiser is the advocate for the bank and also the buyer. Who is the advocate for the home seller? The truth is the home seller does not have one. This is important because the home seller only has the bank appraiser’s findings as a point of reference. Had the home seller obtained a pre listing appraisal they would have a better understanding of their market and where their house fits into that market.
In conclusion, home selling is no longer a game of checkers but a game of chess. A pre listing appraisal seems to make the most sense from a logistics point of view and it would give a home seller a little bit of clarity in a very cloudy process.