Why should seller get an appraisal for listing purposes?
Dear Kelly Kellogg, Appraisal Experts, Inc.,
QUESTION: I sometimes think it may be an advantage to get an appraisal done prior to the listing. How would you explain this to your seller, why I would recommend an appraisal prior to listing the house, since I'm supposed to be the expert?
Nikki, Prudential Realty
You are not alone. I often get asked this question! Here are the best reasons for your client to obtain an appraisal prior to listing:
1. Undoubtedly, the number one reason is to price their home strategically so it sells before the competition at the highest sales price the market will bear.
2. The current market and underwriter/lender requirements are constantly changing. An investment up front in an appraisal to learn about the appraisal process, how prooperties are valued, what an appraiser considers is most comparable, how the adjustments are calculated/applied will give you and your seller considerable knowledge about their market. This will assist you and your client in strategically pricing their home to sell and not sit on the market.
3. Recommending to your seller that he/she order an appraisal prior to listing lends credibility to your presentation. After presenting your CMA, recommend they get their home appraised to doublle check your analysis. You might suggest the seller pay for the appraisal fee up front and then offer a credit for the fee at closing. It ends up not costing the seller anything, but creates a commitment to you, helps you get the listing and more importantly helps you sell the house.
4. An accurate, current appraisal can give your client confidence and peace of mind while negotiating a sales price. Recommend one or two well-trained appraisers with knowledge and experience of the subject's market area who will complete a thorough, supported analysis. This prevents any surprises on the back end!
Thank you for your inquiry. I'm confident this information will assist you in helping your clients.
Appraisal Experts, Inc.
Thank you, we'll be in touch!