Having an appraisal done on your home before you sell can put you way ahead of the game. It will also help you to avoid pricing your home incorrectly which could result in a much longer stay on the market. Or worse… selling your home for less than what it was truly worth.
For a relatively small investment of around three to four hundred dollars, some homeowners will have an appraisal done on their home prior to putting it on the market.
It’s always wise to have your Orlando real estate agent do a comparative market analysis [CMA] on the house you’re about to sell. However, although a CMA can be pretty accurate as well as a great pricing tool, an appraisal is an independent and unbiased opinion that can be a great reinforcement in supporting the price you’e set on the home.
It’s never a good practice to set your price higher than you know that your house is worth and slowly lower it until it sells. These days this approach can hurt you as many buyers search for homes according to the listing price they can afford. A home shopper has no way of knowing that you’re actually willing to go much lower on your listing price and if you don’t meet their price criteria, they won’t give your house a second thought. Also, if your home sits on the market for a long time with several decreases in price, potential buyers my think there’s something wrong with it and that’s why it’s not selling.
Appraisals go quite a bit deeper than any CMA report. Appraisals take into consideration everything from the features that a home possesses to the proximity to schools and shopping centers. Appraisals should also include precise data about the current status of local real estate market which will provide realistic expectations when selling their home.
Appraisals can also utilize a cost approach which is useful for determining the price on a new home that is built to the same specs as an existing property. This is especially helpful for newer homes hitting the market by letting sellers know what competition they’re up against on the new-construction scene.
What’s Included In The Appraisal Report?
An appraisal report can range in length from three or four pages to over a hundred, depending on the comprehensiveness of the report. It will include details about the house, neighborhood details and a list of comparable properties in the same area. An appraisal should also contain an accurate evaluation of the area’s local real estate market conditions in addition to any major problems that exist with the subject property that may affect it’s value.
How Is An Appraisal Completed?
Appraisals are basically an opinion of value that are determined by comparing your home with other similar homes that have recently sold. Once the appraiser has completed a preliminary report, he can then factor in upgraded features as well as needed repairs to come up with an even more accurate determination of value on your property.
How To Read Your Appraisal Report.
Your primary concern should be the negatives found on the report. By focusing on the items that have had a negative adjustment on your home, you can come up with a checklist for things you may want to fix or update if it’s in your budget.
Should You Get An Appraisal Done Before Listing Your House?
Although it may be a good idea to get your home appraised before listing it for sale, it’s not a must. By hiring an experienced Orlando listing agent, you can get all the information you need to list your home accurately for free. A good listing agent will provide you with more than enough information on comparable properties, market conditions and many times will be more familiar with an area than an appraiser will.