Answer:
Even if you’re new to this whole selling-a-house thing, chances are good you’ve heard of a home appraisal. And if you know just a little about the process, you know that the appraisal—a value put on your home by an objective third-party expert—can make or break your home sale. So, with so much riding on this step of the home-selling process, you might be wondering:
What does it hurt to go ahead and get an appraisal before you list?
While an appraisal is an important step in selling your home, there’s a reason it typically doesn’t happen until much later in the process.
Simply put, home appraisals are meant for the buyer’s lender more than any other party. If a buyer needs a loan to purchase your home, the lender will require an appraisal toward the end of the loan application process just to make sure the home is actually worth its declared value. The collateral for the loan is the home, so lenders require an independent appraiser to inspect it and advise on its value.
The market value is what someone is willing to pay for a property—often influenced by emotion and how competitive the area is. If someone really wants a property, they won’t care what the appraised value is, they simply want it no matter what.
While both real estate agents and appraisers use comparable sales (also called “comps”), and the two values often end up being similar, the market value is the one you should be most concerned with as a seller.
Real estate agents will use comps to pull recent data on other houses (that are similar to yours) to arrive at a market value. Agents will also do a walk-through of your property and talk with you before arriving at a number you both feel comfortable listing at.
The only good reason to get an appraisal in advance, would be if you have a unique property where similar properties (to compare to) are unavailable.
Appraisals are expensive, usually in the $300 to $500 range, and if you own a lot of land or a very large house, you may end up paying a lot more.
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