The Importance of Knowing Your Home’s Worth Before Selling It

By October 17, 2018Appraisal Tips
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The Cost of Getting your Home Ready for Sale

Making arrangements for the sale of your house will normally cost between a few hundred dollars on the lower side and a few thousand dollars on the upper side. Let us assume that you’ve decided to sell your home FSBO, so you are doing this without the help of a realtor. The first thing you’ll start with to get your property ready is obviously cleaning and decluttering. You’ll also have to set aside a budget for any necessary repairs and a marketing campaign to attract potential buyers. The worst mistake you can do in such a case is to overestimate or underestimate the price of your property.

If you have decided to go DIY on selling your home, knowing the True Market Value of your property should be at the top of your to-do list. Start by finding out the value before you move to the price. Many at times, we get to hear cases like; since my neighbor’s home was acquired for 265,000 last year, mine should be worth more because it is the best in my neighborhood. While there could be some level of credibility in both statements, you might, unfortunately, be preparing yourself to be disappointed if it turns out that you have overestimated or underestimated the price of your property.

Pricing your Home Out of Sight

Many homeowners looking to sell take a giant leap into the market by setting prices that keep potential buyers at bay. Possibly out of ignorance of how the market works, they do this by relying on what their neighbors made from selling their homes or what they said. Sometimes, it is misleading advice from determined real estate agents trying to land the listing. These are not exactly reliable sources that you can conclusively price your home based on. Overpricing the property only serves to prevent potential and competent buyers from even making an appointment to check out your home.

The Sale Derailed

The most upsetting consequence of overstating the price is contracts that end up falling apart just days before closing. Unless it is a rare circumstance in which the purchaser is paying in cash, they will usually have a representative from the bank, mortgage brokerage, or credit union. The lenders will conduct an appraisal of the property which is meant to shield the lending institution from incurring a loss in case the buyer defaults on the loan.

Leaving Money on the Table

It might not be termed as traumatic, but leaving cash on the table can be haunting after realizing that you actually understated the price of your property. Note that you can’t get a glimpse of the appraisal results because the property belongs to the buyer or lender. It is only the person who ordered the appraisal that is privy to the findings. You are almost 99.9% assured of never seeing them. This is especially true if the appraisal prices it at a couple of ten thousand dollars above the price on the contract. You will only realize this from the cheerful demeanor of buyers at the closing table as they watch you sign away a good amount of equity that you could have earned extra money from. Well, it is always great when a deal closes in goodwill between the two parties, although this should not come at your expense so that you forfeit a significant amount of equity and therefore money.

The Solution is Simple: Get A Pre-Listing Appraisal!

The cost incurred in a pre-listing appraisal can’t be compared to those involved in the above cases. It will help you get to know the actual value of your property and still offer you tangible proof. When a buyer realizes that the appraised home is maybe 2000 dollars above the listed price, they will be in quite a hurry to meet the seller and possibly close the deal. Realtors normally advise their clients to go for a pre-listing appraisal which helps them to market the property.

Don’t take a chance on what could possibly be your biggest life investment. Go to RealEstateAppraisersAustin.com and get yourself a timely pre-listing appraisal at an affordable price. You will get all the answers to your questions straight from our certified appraisers who have specialized in valuing real estate.

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