Why you should consider an appraisal before you list your house

Ask anyone who’s had a home sale fall through, because the house appraised for less than the asking price, how important a professional appraisal is. An appraisal generally runs from $250 to $500 but it may be worth a lot more to you if it will buy you some peace of mind or perhaps settle an argument via a 3rd party.

In addition there are specific cases where an appraisal may prove to be especially valuable – when there are no recent comps available or if there is a dispute over your home’s value – either between co-owners or a potential buyer for instance. If you are selling your home yourself (FSBO) and you’re not sure exactly where to price it or you suspect your Realtor’s opinion is off the mark it may be a good idea to order an appraisal. In fact, make a deal with your Realtor or spouse or with whomever you may be arguing at the time – you’ll set the asking price at or just below the appraisal price.

Keep in mind that an appraiser can view your home with a completely objective view – after all, he’s just there to determine the value and nothing more, once he’s completed the appraisal your relationship with him ends. The factors that an appraiser uses to determine the value of your home include: square footage, condition of the home, whether or not it includes any special features, comparable home sales in the neighborhood (if there are any available) and any knowledge he has about the current real estate market.

If your home is under contract and the appraisal comes in at less than the agreed upon price, there are things you can do to rectify the situation: lower the price, ask the buyers to increase their down payment (note this isn’t always a winner), you can lower the price and the buyer can increase their down payment at the same time or dispute the appraisal.

Note, if the sale includes appliances, furniture and the like, the buyers should pay for it separately because it won’t be included in the appraisal price.

Beth I. Skinner, Associate Real Estate Broker, Making dreams come true, one house at a time.

Beth I. Skinner

As a Denver area real estate agent I'm intensely devoted to my home buyers and sellers; fighting for you every step of the way for the VERY best results. I'm definitely not your "typical" salesperson. I probably won't remember to ask about your kids' ages or how long you've lived in Colorado. I don't engage in small talk just so you'll think I'm nifty and hire me. What I ALWAYS remember however, is who I am working for - and that's YOU. I'm on YOUR side; I take my responsibilities as your agent very seriously and will work my brains out for you. So if you're looking for the kind of real estate agent who always remembers to say "good morning" or asks about the little ones soccer game then you should move along - I'm too cranky for you. But if you're looking for the kind of real estate agent who will fight like crazy to help you, then you've come to the right place. And when I'm not helping clients I'm usually walking dogs at the shelter, training at the gym, or watching Star Trek re-runs on Netflix.