Should You Get Your House Appraised Before Selling? 

Hey there! If you’re thinking about selling your home, you might be wondering, “Should I get an appraisal first?” It’s a common thought, and I totally get it. Setting the right price is super important, and no one wants to leave money on the table, right?

But here's the scoop: getting a pre-listing appraisal might not be the best route for setting your asking price. I know it sounds surprising, but let’s dive into why that is, shall we?

Understanding Appraisals in Real Estate Transactions

So, what’s the deal with appraisals? When it comes to selling a home, an appraisal is mainly there to confirm that the property’s value matches or exceeds the purchase price. This is especially important for buyers since lenders want to ensure the property is worth what they’re lending.

Think of it this way: the home is the collateral for the mortgage, so the lender needs to be sure they're making a safe investment. After a purchase contract is signed, the lender will arrange for an appraisal, and that appraiser will take a close look at the home based on some industry-standard processes.

How Appraisers Determine Home Value

Understanding how appraisers figure out a home’s value can help you see why an appraisal might not be what you need. Here’s a quick rundown of their process:

1. Home Visit: The appraiser checks out the property to collect the info they need for valuation, usually taking about 30 minutes.
2. Comparative Sales: They look for recently sold homes that are similar to yours. The more closely matched, the better!
3. Price Adjustments: Based on the differences between your home and the comps, they’ll adjust the prices accordingly.
4. Final Value: Finally, the appraiser comes up with a value based on all this info, market trends, and comparisons.

The Downsides of Getting an Appraisal Before Selling

Alright, now let’s tackle the big question: Should you get an appraisal before selling? Here are three reasons you might want to skip it:

1. Misleading Pricing

Getting an appraisal could actually lead you to set the wrong listing price. You’d think it would help, right? But sometimes, the appraiser's adjustments don't match what buyers in your area are looking for. For example, if the appraiser doesn’t adjust for square footage differences, you could end up with a price that doesn’t align with market demand.

2. Extended Time on the Market

If you base your asking price on an appraisal that might be inflated or deflated, it could cause your home to sit on the market longer than necessary. Imagine getting an appraisal of $500,000, listing at $475,000, but still thinking it’s worth that $500,000. This mindset could lead you to reject reasonable offers and keep your house on the market for too long.

3. Added Costs

Let’s talk dollars. The average appraisal can cost anywhere from $300 to $800+! That’s money you could be putting toward sprucing up your home or even moving expenses. Instead of an appraisal, consider investing in a home inspection or making some improvements to boost curb appeal!

When to Consider Getting an Appraisal

Now, don’t get me wrong—there are times when getting an appraisal can be useful:

• Inherited Property: If you've inherited a home, an appraisal can help clarify its value, especially if you’re unsure about the local market.
• Divorce: If you’re selling because of a divorce, an unbiased appraisal can help both parties agree on a fair price.
• Unique Features: If your home has standout features that make pricing tricky, an appraisal can offer a solid starting point for discussion.

Appraisal vs. CMA: What’s the Difference?

Here’s the kicker: an appraisal isn’t the only way to estimate your home’s value. A Comparative Market Analysis (CMA) from a qualified Realtor® can give you a no-cost assessment of your home's worth, tailored to current market conditions. The beauty of a CMA is that it’s flexible and focuses on what buyers in your area are looking for.

Why Choose a CMA Over an Appraisal?

You might be wondering, “What if I don’t get an appraisal?” Well, a CMA is your best friend in this scenario! Not only is it quicker and free, but it helps you avoid mispricing your home and getting stuck on a single number during negotiations. Just make sure to work with a qualified agent who understands your market.

Let’s Work Together!

At Best Nest Utah, we’re all about helping you feel empowered in your real estate journey. Cody and I believe it matters where you live—it’s more than just a transaction; it’s about finding the right home for you!

So, if you’re thinking about selling and want some friendly guidance, give me a call! Let’s chat about how we can make your home-selling experience as smooth as possible!

Contact Me:

Alisha Hidalgo
Best Nest Utah with Real Broker LLC
(801) 703-7721
Alisha@BestNestUtah.com

USEFUL RESOURCES FOR SELLERS:

• What's Your Home Really Worth? Get Your Free Home Evaluation HERE
  
  
• Essential Tips for First-Time Home Sellers: Don’t Overlook These Key Steps!
  
  
• What Not To Fix When Selling Your Home - 9 Costly Mistakes To Avoid