A common question I’m asked is, “Should I get my home appraised?” Today I’ve laid out of the pros and cons of getting an appraisal up front.
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Selling a home? Click here to use our FREE home evaluation tool.
Call us at (904)-250-0805 for a FREE home buying or selling consultation.
There are many sellers out there who are preparing their homes for the market, and they ask me, “Should I get my home appraised before I list it?” I have a list of pros and cons to help you make that decision.
First, what is an appraisal? An appraisal is a third-party opinion of the value of the property and is coming from a certified appraiser— a licensed professional who comes out and takes any sales that have happened in the last 12 months in a certain area. They then also make adjustments for bedrooms, bathrooms, and any other unique features to the house.
The typical cost of an appraisal is between $300 and $500, depending on the complexity of the appraisal. One way an appraisal can become complex is if it’s a brand new construction home. They’ll certify it one way if it isn’t a resale, but if it is, they’ll certify the value a different way.
The typical cost of an appraisal is going to be between $300 and $500.
A key benefit to getting the appraisal done up front is that it can let you know a price point where you can start marketing your property. Then you won’t have an issue on the back side when it goes under contract and you already know what it could appraise for.
Another benefit is appraisals remove some risk for the buyer when done up front. Buyers feel more comfortable that the value can be proven when looking at the home.
The downside of having an appraisal done up front is that it only proves the value of your home on paper. It doesn’t take into account what someone is actually willing to pay for your property, or how the market will be when you list your home.
A lot of times we find that the market value and the appraised value never match one another, so you’re taking a risk—and maybe even setting yourself up for failure if your appraised value is much higher than what the market is willing to pay.
If you have any questions about this or any other real estate topic, or you’re looking to buy or sell a home, please give me a call. I’d be happy to help!
