So you’ve decided to list your home and your next thought is to contact a realtor to find out how much your home can sell for. Real estate agents perform a critical role in the transaction of your home but getting an independent appraisal report can likely save you time and money. I know what you’re thinking, if I pay for an appraisal report, how will that help me save money?
Great question. Imagine, you go with the agent who suggests you list your home for $500,000. You’re excited even though homes have been selling for less, but you’re convinced that your home will do better than everybody else. Similar homes have been selling in the area for about $25,000 to $40,000 less. After about a month and spotty activity on your listing, the decision is made to lower the price to $489,000. Still below the range of what most homes have been selling for. Keep in mind that every other realtor is aware of what every other home has been selling for and alerting their clients that your home is listed higher than typical.
Another painful month goes by and now the activity is at a standstill. The decision is made to drop the price again. Buyers are now recognizing that there have been two price drops and are willing to gamble that the price will go even lower as you grow more frustrated with trying to sell your home. Adding to the frustration is that you can’t make any offers on your new dream home until your home has an accepted offer.
An appraisal report from the beginning would help put you in a position to retain as much value for your sale as possible, and for a modest fee will give you confidence with your list price.