There are some owners who choose to order a home appraisal prior to listing their house on the market to determine the best listing price. There is some speculation on whether or not this strategy would work. The fact is that depending on how the homeowner chooses to sell the house, the results of a pre-listing appraisal may differ.
Sale by the owner:
If the homeowner chooses not to utilize a real estate agency to sell their property, a pre-listing appraisal should be considered. An experienced listing agent is a great ally if the homeowner does not have enough information to establish a strategy for setting a listing price. A homeowner may utilize other sources for information to find a sale price but they ma y not have the sales, listings, pending and expired comparable that are needed to reflect the true market value of the property. A pre-listing appraisal allows the seller to establish the market value and better determine a list price.
If there is a difference of opinion between the homeowner and the listing agent in regards to the pre-listing price, a third party appraiser may be brought in if the homeowner would like a second opinion.
Is it Worth It?
A listing appraisal provides the seller with a clear idea of how much their home is actually worth. Home appraisers are not compensated by the sale of the home, which means that the home appraiser is unbiased when setting a pre-listing price. Consumers usually only consider the real estate appraisal process from the buyers perspective, but the mortgage provider requires a valuation to determine if the proposed financing is supported by the property’s market value. This is the reason why pre-listing appraisals aren’t as common as home appraisals for financing.