Get a home "Pre-Appraisal" Before putting Your Home on the Market!

You Receive Higher Offers when a home is priced right, buyers fear they might lose out on a good home, so they are less likely to make "low ball offers." The last thing you want is a low offer.

It's Very Hard To Be Objective about your own home because of your emotional attachment to it. One piece of advice that is consistently given by the experts in selling your home FSBO... Do NOT "Overprice" Your Home!

So How Do I Price It RIGHT? With a Pre-Appraisal! Along with helping you set a realistic selling price so your home will attract buyers, a Pre-Appraisal is very valuable as a negotiating tool once you have a potential buyer. It gives you something concrete to show your buyer. It's an independent third party's opinion of your home's value, and not just you saying how much it is worth. Potential buyers know you have an emotional attachment to your home and will be far more likely to give credibility to a Pre-Appraisal than yours.

When closing on a home an appraiser will come out to value how much the home is worth. This will be one of the factors that will determine to the person interested in buying the home if they are getting what they are paying for. If the home is appraised lower than the amount they were offering then the buyer will probably back out of the agreement. Therefore, as the seller you want to make sure that the home you are selling is in the best condition possible in order to receive a good appraisal. Read on to learn how to get a good home appraisal.

Check around your house. You know best what will need to be repaired. If you have insect problems then have a bug or termite killer come out and spray. Eliminate any evidence of an insect or termite problem. If you have cracks in your walls there may be problems with your foundation. Have that checked and repaired if needed.

Paint to achieve a clean look. Painting will give a fresh appearance in each room and will leave a good impression to the appraiser. Keeping the house clean will give the impression to the appraiser that you take good care of your home.

Add ceiling fans or change windows and doors in order to raise the amount of the appraisal. Adding to the home what other homes nearby do not have will only benefit how much you can actually sell the home for. Add aluminum siding or painting the outside of your home will improve the appearance of the home as well.

Clean up on the outside of the home. If you have no shrubbery or flowers then you either hire someone to do the landscaping for you or you can plant bushes and flowers yourself. If you have trees and shrubbery then make sure they are trimmed. Make sure the lawn is cut and edged.

Leave your pets with a friend or relative or a kennel until the appraiser is done checking things over. Leave no evidence that you have pets. Take all water and food bowls, litter boxes, chains and leashes, and food into the trunk of the car or hidden in a container in the garage. This will prevent any clue that pets live in the home and prevent the appraiser from lowering the value of the home.

Think About This!
"If You Don't Get A Pre-Appraisal
How Will You Know For Sure"...

But More Importantly, How Will You Convince A Buyer Your Price Is RIGHT?" You have had time to come to grips with values and get comfortable with the price, but the Buyer needs to feel that comfortable as well. Until the Buyer does the asking price will always get in the way of a sales contract!



 How Is A Home's Value Determined? You have several ways to determine the value of a home. An appraisal is a professional estimate of a property's market value; based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home.

On average, an appraisal costs about $350 for a $250,000 house. A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes.

Properties That Sell In Today's Market:
How Can Your Property Be A "10"? 0n a Scale of 1-10,
The "lO's" Are The Ones That Are Selling Faster...

"Setting the correct asking price is the most important step in the process of selling your home," "Home buyers look at houses in ranges". "Set a price that's too high and they'll think that your house is too steep for their budget and they won't even bother to take a look at it. Buyers are tuned in to the market. They've seen lots of properties and probably know the reasonable price ranges for properties they are interested in."



So if your selling strategy is to set an unrealistically high price in hopes that someone will bite, rethink you strategy. "Homes that are overpriced will usually generate no offers, no negotiations, and no sale".



What it will do, however, is drive potential buyers into the arms of the competition -- other, similar houses that are on the market at more realistic prices will sell, which means that your property could sit unsold for a long period of time. Homes that is on the market too long become "shopworn," leading buyers to conclude that something must be wrong with the property.

Set your price too low, on the other hand, and you'll leave a bunch of money on the table. But price it right and it should sell quickly regardless of market conditions. Who has not seen a TV ad featuring a couple boasting about how they sold their home in three days with the help of some For Sale By Owner Service? That may sound nice, but those are classic cases of homes that were under priced.



If the Seller of the home has no proof of value Buyers tend to get very scared and worried about pricing & value, a situation which breeds low offers - Buyers think you are supposed to dicker if there is no proof of value.

If there is no appraisal the "I wonder how much it is worth" question gets in the way of a Buyer really looking at your house. They walk thru wondering what the house is worth, whether you will be realistic and trying to decide how much to offer instead of mentally placing themselves into the house and making buying noises - the uncertainty can drive the Buyer right out the front door.



What you think isn't as important as what the Buyer thinks! Recently there was a "For Sale By Owner" that got a Pre-Appraisal. He called a week later just to brag. He was absolutely bubbling; he said it worked exactly as we said. For the very first time since he put his house on the market, people were now placing furniture, decorating and deciding who would get each bedroom.



He said he showed them the  Pre-Appraisal as they entered and not one person had a price issue or asked him how "firm" his price was. Prior to getting a Pre-Appraisal that was the #1 question asked - even before people looked at the house.

And don't forget about the Buyer's Lender! That is one more aspect that you probably haven't even considered - FINANCING! Odds are you and your Buyer will need financing to close the deal, so let's look at Mortgage rules & limitations. Why do you think a mortgage company requires an appraisal before they will do the loan? Federal statutes say mortgages must have "adequate collateral" which means the house must have an ACTUAL VALUE commensurate with the sales price & loan.

Since ACTUAL VALUE is a critical legal factor of the financing process, the Buyer's financing will be limited to a percentage of the sales price or appraisal, WHICHEVER IS LESS. This means a borrower cannot get a loan for just any old price you make up. Your house is only worth what it is worth, so obviously an appraisal needs to be an integral part of the pricing process. It is your limiting factor. No matter how easy the sale was, if your Buyer cannot secure acceptable financing the whole deal is off!




National figures say that 44% of all Buyers get almost to closing before they discover they can't get the loan they want or can't get a loan at all. What will you do if your Buyer is one of the 44%? It is best not to take a contract than to take a contract from someone who can't qualify or close on the sales contract. Not To Worry... This is just being a smart and informed "For Sale By Owner". You don't want to have to sell your house again; months later, because the first buyer couldn't close or the contract price was more than you could get an appraisal for.

Think About It... On the next home that you are buying, wouldn't it be easier if you knew the value of the homes that you are looking at? Wouldn't that make you feel more comfortable making an offer? In this market would you pay more than a house is worth?   Of Course Not!   Well, your Buyers are in the same boat when they preview your house.

So how can you figure out the right asking price?

You can now get a Pre-Appraisal with the help of a certified appraiser (click on the link) from your area and will provide you with detailed property information and a value range (high-low) for your property based on comparables in the area. It's a written analysis that compares your house to others like it, in your area, that sold recently. Ask for a"Fair Market Value" appraisal.

The Pre-Appraisal will give you factual information about the houses that sold: Number of bedrooms and baths, square footage, such amenities as fireplaces and swimming pools, as well as the listing prices and the sold prices. Getting a Pre-Appraisal for your home is very smart, fast, and easy and might save you a lot of heart ache down the road.

With a Pre-Appraisal, you'll get information by an appraiser to determine property values. It really is a hassle-free service that will help you price your home right, so you can sell your house, for the most amount of money, in the least amount of time.


This is not a solicitation for a listing if your property is already listed with a broker.  This has been provided for general informational purposes only and does not offer legal advice. It is always recommended to seek legal representation in any real estate transaction.

When it comes to finding a real estate appraiser, many
homeowners don't know what to look for. This article describes five
things to look for in a property appraiser.

 Steps

1. Always make sure a property appraiser is licensed or certified
   by the state to perform real estate appraisals. While state
   licensing and/or certification isn't always an indication of
   quality, it ensures that an individual has met certain standards
   and is authorized to perform property appraisals. Some states do
   not require licensing to perform real estate appraisals. It is
   unwise to use the services of any professional who is not licensed
   or certified.
2. Don't be afraid to ask an appraiser for a copy of his or her
   license. A good appraiser will readily provide this documentation.
   Copies of licenses are commonly requested by mortgage brokers and
   loan officers. Once you get a copy of the license, it's a good idea
   to check with the government agency which issued the document to
   ensure the license is active and in good standing. Furthermore, you
   can view the National Registry at http://www.asc.gov and verify whether the appraiser
   is registered and eligible to perform appraisals.
3. Ask the real estate appraiser what percentage of their work is
   performed in the neighborhood in which the property is located.
   Appraisers who do a lot of their work or live in a particular area
   often have a deep knowledge of property values in that area.
   Additionally, they are more likely to know how "neighborhood
   variables" such as school districts and fire departments affect the
   property values in the area.
4. Find out if the property appraiser has experience performing
   appraisals for consumers as opposed to real estate professionals.
   Mortgage brokers and loan officers have distinctly different needs
   than homeowners. An appraiser who understands the needs of
   homeowners is more likely to help you learn about the appraisal
   process and answer questions you may have along the way.

Tips

• Many excellent real estate appraisers carry a professional
  designation. The most widely known industry designations are SRPA,
  SRA and MAI. These designations are issued by the Appraisal
  Institute, and demonstrate an appraiser's commitment to continuing
  education and ethical standards. Oftentimes, the standards required
  to obtain these designations exceed those set forth by state
  licensing/certified requirements.

 Warnings

• If you are selling your home and want to know what price you
  should ask and what your marketing time will be a conventional
  appraisal is not enough. Let the appraiser know what you are using
  the appraisal for and ask what they will do to help you. If it does
  not sound like enough call another appraiser. An appraisal is an
  unbiased opinion of value and an experienced appraiser will help
  you sell your home by showing what exactly the market is doing. A
  realtor works to obtain a listing and may say that your home is
  worth more than it really is just to procure a listing. The first
  step in selling a home should be to contact an independent and
  unbiased appraiser especially in a volatile market.
• Don't give an appraisal more credence than it deserves.
  Appraising is mostly subjective, not the hard science many lay
  people believe it to be. The estimated value of a given property is
  a value reflective of the current market and is completed using
  historical data. The effective date is reflective usually of the
  date of inspection and is typically the cap for the date of sale
  that a potential comparable may have. A current market value does
  not predict the future and a good appraiser will recognize the
  intended user as a consumer and write a detailed explanation of
  market trends.
• Market reactions to properties are often emotional,
  particularly for unique properties, and so forming an opinion of
  value is not an exact science.
• An appraiser will provide their personal opinion of value,
  based on their estimate of the market's reaction, but other
  appraisers will have varying opinions and sometimes the market
  reacts in unexpected ways. An appraisal is no more accurate than
  other predictions of human behavior.
• No, appraisal is not an exact science but if done properly can
  give a credible result. Through market analysis a trained appraiser
  can give an opinion of value which can be relied upon. Without
  appraisers fraud would be rampant in the industry and cause such
  things as the S&L crisis in the early 90's.