Should You Get an Appraisal Before Listing?

“What’s my home worth?"

It’s a question that crosses the mind of nearly every home owner, especially as they start to consider selling their current home. It’s a great question to have- the value of your current home can really help you make the decision if now is the right time to sell. Once you’ve decided to sell, you want to make sure you don’t leave money on the table by pricing your home below what it’s truly worth. At the same time, though, too high of an asking price could mean repulsing potential buyers and wasting valuable time on the market. It would make sense, then, to get the best answer to that all important question.

While there are a few ways you get an estimate, one popular option are home appraisals. These can be valuable information, giving you an informed opinion at any given time, depending on market conditions. Appraisers are professionals who do this for a living- so they must be pretty good at finding a home’s worth… right? After all, mortgage companies rely on them to ensure that the financed amount lines up with the actual value of a home. Should you hire them to appraise your home before listing it?

The reality is a little more complex than you might expect. Appraisers are good at doing one thing: giving you a dollar amount. It’s good information to have, but there is a cost. The typical price range for a professional appraisal is between $314 and $423, and the final cost depends on a number of factors, including the property’s size and condition and the level of detail involved in the appraisal. A large home or property will usually cost more to appraise, as will one in a larger city or an area with a higher cost of living. On top of that, appraisers are working with a limited set of data- typically only referencing closed sales, not taking into account other market factors like price increases and decreases, or how long a home was on the market. They also don’t reflect market changes like increases in supply or demand. In the time between getting your home pre-appraised and getting it on the market, a lot can change- and the price you were given won’t reflect it. Even if your home has been appraised prior to listing for sale, it is very likely that it will still have to be appraised again by the buyer- meaning you’ve paid and gotten very little in return.

If you really want to know what your home is worth, it makes far more sense to work with an agent- they can give you a fair market value, but also will provide a selling strategy to make your home stand out on the market and attract buyers. An agent will be able to more accurately predict market changes and can help reflect those in your asking price. Your agent will also be there during the negotiating process, and can help work directly with you to find the best deal possible. As attractive as getting that early appraisal might seem, you’re much better off just finding a qualified agent you can trust! They can be an important part of your team throughout the entire process, and have a vested interest in seeing you sell your home for the best price possible.