Most homeowners know what an appraisal is because they had to have one completed when they purchased or refinanced their home in the past. What is the appraisal process truly about; it’s about trust. The bank appraisal is ordered not for the buyers benefit but for the bank who is lending the money.
Home Selling Process without a Pre-Listing Appraisal
When a home owner wants to sell their house, they meet with a Realtor who may ask them to paint their living room, repair the deck or fence in the back yard, or install new landscaping. These items could cost around $300 to $600 dollars. I am being kind with the items that a Realtor may suggest that you change. Then the Realtor will present the homeowners with comparable sales. Maybe the homeowner even looks at a free home valuation website. So now the homeowner has a spruced up property and with no formal training in home valuation must set a list price. The bottom line is they still don’t actually know what their house is worth. Moreover, they don’t know where the home is going to appraise should they receive a contract offer.
The Need for a Pre-Listing Appraisal
Had the home seller spent the same amount of money on a Pre-listing appraisal from a Maryland Certified Residential Appraiser they would have at least had tangible proof in the form of comparable sales that meet Fannie Mae and Freddie Mac lending criteria for comparison. More importantly, by using the information contained in the Pre-listing appraisal, they would have had comparable sales that would defend their listing price.
When the bank appraisal is ordered for any home buyer, the bank appraiser is the advocate for the bank and also the buyer. Who is the advocate for the home seller? The truth is the home seller does not have one. This is important because the home seller only has the bank appraiser’s findings as a point of reference. Had the home seller obtained a Pre-listing appraisal they would have a better understanding of their market and where their house fits into that market.
In today’s real estate market, selling a home is not a game of checkers, but a game of chess. A Pre-listing appraisal is a home sellers key to success in obtaining an accurate unbiased opinion of value. Order your Pre-listing appraisal today!