Is a Home Appraisal Worth It?
A home appraisal is sometimes done by sellers to get a good idea of the real value of their home before listing. The appraised value is often listed in the listing write-up! Despite its advantages however, not every
home seller should undergo a home appraisal. Here are a few reasons why you wouldn't need an appraisal:
Obviously, appraisals add to closing costs. A recent post from Home Guides explains:
Saving You Dollars
Waiving the need for an appraisal saves around $400 in appraisal fees, and you don't have to worry about the bank pulling out of the deal if it turns out you have less equity than expected. Via homeguides.sfgate.com
A home appraisal isn't free, and between
renovations,
inspections, and other costs, it's definitely an extra expense.
There's no need to get a home appraisal if money is a dealbreaker
Next in our list is a major one: buyers don't necessarily agree with appraisals. In today's Fort McMurray housing market, buyers have a lot more influence than sellers:
Buyers don’t often agree with appraised value
There is very clear evidence in terms of the benefits of the inspection prior to listing, but the appraisal is a bit trickier. It is completely worthwhile in some cases, while in others it is, quite frankly, a hassle and waste of money.
Buyers don’t often agree with appraised value. Remember, the current market dictates what a home’s price and value in terms of sales. That doesn’t always match up to the appraised value in a down market. h/t learnfromgreen.com
No matter how high an appraiser values your home, it may not be worth much to a buyer, especially in a balanced/buyer's market. There are still different factors that could affect the market value of your house such as the location, condition, etc.
Following on, the real estate market is constantly changing. The fluidity may have an effect on your listing:
CHANGING MARKET
The actual data in an appraisal is taken from “recent” sales. So, if you purchase an appraisal today and your home doesn’t sell for a couple of months, there may be other sales that occur in the meantime that could effect the property’s value. Here’s an example . . .
You decide to sell your home and purchase an appraisal on March 1st. The appraiser uses sales data from the last few months and comes up with a home value of $300,000 for your property. 3 weeks after you’re appraisal was completed, a home sold that is similar to yours in square footage and amenities but it sold for $315,000.
While none of us have a crystal ball, we can only use the current data that’s available, so this scenario can be one negative to purchasing an appraisal before you list your home. read more at livegulfshoreslocal.com
After a bit of time in a volatile market, appraisals get outdated. This is why agents (including The A-Team's specialist listing agents) tend to offer free Home Evaluations. We have access to recent sale data and we know how to use it. Our agents evaluate homes by Comparative Market Analysis all the time, and know how to do it well and communicate your home value to you effectively. That being said, with a very short list of home (for example, unique ones), we do sometimes recommend a professional appraiser (the value experts). If you are looking for expert assistance with marketing your home, from pricing to key release, we're here to help! :)