Selling a home is a big decision, and you want to make sure you get the best possible price for your property.
But how do you know what it’s worth and what is a realistic asking price?
I find that one of the best ways to determine your home’s value is to get a professional appraisal.
Here are some of the benefits of getting an appraisal when putting your house on the market to sell:
Determining Market Value
An appraisal is an objective evaluation of your home’s value that takes into account factors such as location, size, age, condition, and recent sales of comparable homes in the area.
This information can help you determine the fair market value of your home and set a competitive asking price.
This can help you avoid pricing your home too high, which could make it harder to sell, or too low, which could result in you losing money.
You can do some of the leg work yourself but checking out properties in your area that have sold recently, and getting an estimation from a property website.
But it’s still important to get an appraisal from several local estate agents before coming up with the magic number.
Identifying Potential Issues
During an appraisal, the appraiser will conduct a thorough inspection of your home, including the interior and exterior.
This inspection can uncover potential issues that could affect the value of your home, such as outdated electrical or plumbing systems, roof damage, or the need for foundation repairs.
Having this information ahead of time can help you address these issues and make any necessary repairs or upgrades before putting your home on the market.
It’s important to present your home in the best possible way, especially in a competitive market, to ensure it stands out from the crowd.
Facilitating the Mortgage Process
If a potential buyer is obtaining a mortgage to purchase your home, the lender will require an appraisal to determine your home’s value.
Having an appraisal already completed can make the mortgage process smoother and quicker, as the lender will already have the information they need to make a loan decision.
This can help streamline the process and make the sale go more smoothly.
I find that some mortgage lenders will still want to send their own valuation agent to your property, but it can’t harm your case to have a couple of professional appraisals to show them.
Closing Negotiations
An appraisal can serve as an independent, third-party evaluation of your home’s value, which can help facilitate negotiations during the closing process.
For example, if a potential buyer feels that your asking price is too high, the appraiser’s assessment can provide objective evidence to support your asking price.
Having this information on hand can help make negotiations more straightforward and minimize the risk of disputes.
It will give you more confidence in the price you’re asking and enable you to stand your ground, or even walk away from an offer.
Planning for the Future
Knowing your home’s market value can help you make informed decisions about your future plans.
For example, if your appraisal reveals that your home is worth less than you thought, you may want to consider making repairs or upgrades to increase its value as I’ve already mentioned.
On the other hand, if your home’s value is higher than expected, you may want to take advantage of the increased equity by using the proceeds from the sale to make a down payment on a larger home than you thought you could afford, or invest in another property.
It might also enable you to buy a property that’s more of a project because you’ll have the extra cash to afford the renovation work.
Conclusion
An appraisal can provide valuable information about your home’s market value, potential issues, and more.
By getting an appraisal before putting your home on the market, you can make informed decisions about selling your property and increase your chances of getting the best possible price.
