The first was to choose the right real estate agent and the second was establishing the right asking price for their home (Top 10 ways to sell your home! Numbers 1 and 2 are…)!
Today, as luck would have it, one of the top residential real estate appraisers on Long Island and in New York City sent us an article on the value of a home seller getting a pre-listing appraisal prior to setting an asking price.
It’s objective and unemotional or as Sgt. Joe Friday used to say ‘Just the facts.’
A Pre-Listing Appraisal: Do you really need one? by Marc Powell
So you’ve decided to list your home for sale. If you are like most people your home is your biggest investment and most valuable asset. You may have spent much time and money improving and maintaining your home. The decision to list your home for sale may have been an emotional one, but the list price itself needs to be based on facts. List too low and you may sell quickly but you might be losing money. List too high and you may sit for months going unsold.
If you are a typically motivated seller and you expose your home on the open market to typically motivated buyers, your home should sell at “Market Value”. This is the most likely selling price based upon recent sales of similar homes in your neighborhood. An appraiser is an expert at determining market value.
You may plan on using the services of a local realtor. They should have extensive first-hand knowledge of the market in your neighborhood. Remember, a realtor’s compensation is directly related to if and how much your home sells for. A local appraiser also has extensive knowledge of the market area: in addition they also know current lending guidelines regarding appraisals. Most buyers will be taking a mortgage in order to complete the purchase. Lenders have very specific rules regarding the comparable sales which can be use in a report. Realtors are not always aware of these guidelines. If your buyer is applying for an FHA insured loan there are additional guidelines regarding the physical condition of your property as well. An FHA approved appraiser can make you aware of any defects which need to be corrected prior to listing your home. This will help eliminate the chances of the deal falling through.
By using the services of a licensed or certified local appraiser you will be getting an impartial professional opinion of your homes condition and current market value. They will have first-hand knowledge of current lending guidelines and can take them into consideration when researching and completing your appraisal.
Many people are surprised when they find out their home is worth much more than they estimated, allowing them to list higher than planned. Some owners have an over inflated vision of what their value is and an accurate appraisal helped them to realistically price their home for sale
A small investment up front may save you a lot of time and money going forward!
Marc Powell (email@example.com) is a Certified Residential Appraiser with 25 years of experience in the NYC/Long Island market. His company –All Points Appraisal covers Nassau, Suffolk, Queens and Brooklyn specializing in 1-4 Family homes, Co-ops, Condos and Mixed-Use properties. They provide appraisals for Mortgage Lending, Estate Settlement/Planning, Matrimony, Bankruptcy, etc.