A buyer who is interested in your house will likely request a home appraisal to ascertain its value. If they go through a lender, the bank will require an appraisal to make sure that value is there in order to cover the loan. However, there are many reasons for a seller to also order an appraisal prior to listing their home for sale, as the guide below explains.

Why Arrange a Pre-Listing Home Appraisal?

1. Obtain an Accurate Assessment of Your Home’s Value

A professional appraisal will give you a market value assessment of the home’s worth within the local market. Experts will compare your home with others in the area that have similar features—adjusting for any special amenities it might have or significant repairs it might need.

As an impartial third party, the appraisal assessment may be more true to the home’s worth than a real estate agent who is paid on commission based on the property’s sale price.

2. Finds Out How Renovations Affect the Value 

If the report shows that your home doesn’t stack up against other properties that are going up for sale, this can help you come up with a plan to increase value.

For example, there are several cost-effective updates you can make to modernize the kitchen or bathrooms—such as installing new cabinets, switching out the fixtures, or changing the color scheme to one that is more appealing to the masses. Your appraiser can also offer a predicted value based on your renovation plans.

3. Match the Buyer’s Expectations

Potential buyers must obtain a real estate appraisal on behalf of their lender before they can go through with the purchase of the property. If the results are lower than the sale price, it is viewed as a bad investment and the lender will either refuse to provide financing or they will only loan the buyer an amount equivalent to the appraised value.

However, by getting a pre-listing appraisal, you can fix an accurate asking price, avoiding last-minute renegotiations and have accurate information that can be provided to the potential buyers to justify your asking price!

Concept Appraisal Services has been assessing real estate for clients throughout the Denver, CO, area for more than 16 years. Their thorough understanding of the real estate market helps them provide accurate and reliable assessments. To request a free quote, visit their website. Call (303) 506-6254 to schedule an appointment.