DO YOU NEED A PRE-LISTING APPRAISAL?

You’re ready to sell your home. So shouldn’t you get an appraisal so you know the value of your house? That seems logical, but the answer might surprise you. Actually most homes do not need a pre-listing appraisal and in fact it could give you bad information which could cost you thousands of dollars.

Let’s talk first about an appraisal, how it’s done and what it means. An appraiser for an existing home looks at recent sales in your area and compares them to your home. They will add or subtract for different upgrades, locations, views, size and other factors and then arrive at a value. Because they can only take closed sales, depending on the time of year you get the appraisal, it might or might not help you price your home for sale.

For instance, our market trends show that home prices are lower during the late fall and holiday season. If you are hoping to take advantage of the renewed activity in January, an appraisal which only uses sales from December could be lower than current list prices. The reverse could be true if you are listing in the fall and the recent sales are still at summer prices.

When you contact a real estate agent about possibly selling your home, they will present you with a Comparative Market Analysis (CMA). The CMA is used to help homeowners understand their real estate market. They compare not only the closed sales, but active listings and pending sales as well. Your agent has experience with your area and can talk with you about the direction of the market and how your property will fit into the mix.

So are we saying that an appraisal is always a bad idea?

Not at all! There are situations when an appraisal could be very useful. Particularly for custom homes and luxury homes, because finding comparable properties can be very difficult. If your home is unique in your community, then the appraisal can help you and your potential buyers see the enhanced value your property offers.

An appraisal only looks backwards in time, you and your agent want to look forward. You need to choose a list price that fits the market as it appears today. Before you order an appraisal which might or might not be relevant, talk with your agent and get some initial information. Based on the CMA and conversation with your agent, you may find that it’s unnecessary to pay for that appraisal before you list your home. 

Are you in the market to buy or sell a home in the Richmond, Virginia area? Everything we do at The Murray Morris Group is done with you, our seller at the forefront of our actions. We'll present a Comparative Market Analysis just for you and if an appraisal is necessary will discuss why. We know how to market your home, stage it, and hold an open house that will help sell your home quickly! The Murray Morris Group specializes in catering to the needs of each and every one of our clients. You can read their testimonials here. Put your trust and valuable time in the hands of industry experts! Give us a call today!

Shannon Murray and Scidney Morris

Contact us at 804-874-5030 or email mmg@themurraymorrisgroup.com
Legendary Service | Exceptional Results | Clients for Life!