profile picture

English French Spanish

rightPre-Listing Appraisal Services

If you’re working with a real estate agent to list your property,  likely they’ll provide you a Comparative Market Analysis (CMA) that lists selected sales in your area as one of the first steps in determining what to set as the “Listing Price".This step is vital if you're going to maximize your profit and minimize the home’s time on the market.


But even if you're working with the most experienced real estate agent, it's probably in your best interest to have an objective third-party's opinion of value prior to signing a Listing Agreement. That’s where we come in. We can provide you with a pre-listing appraisal so both you and your agent have an accurate description of your home's features and a detailed analysis of the most recent & similar "comparable sales". In addition to helping you set a realistic selling price so your home will attract buyers, a professional appraisal can:

 

  • Be a very valuable negotiating tool once you have a potential buyer
  • Impress buyer’s with written proof of your home’s condition inside and out
  • Save the listing agent and office time & money on marketing the home, by accurate pricing - this also makes the realtor look better, in terms of skill at efficient marketing through teamwork with the appraiser
  • Make yourself aware of problems and eliminate last-minute repair hassles that might delay a closing
  • Decrease the chances of unknown problems that cause sales to fall through - like the home going back on the market when it fails to "appraise" to support the first (second?) buyer's mortgage risk/qualifications. Listing "Not Subject to Appraisal" is going away more, in today's Buyer's Market - it's simply not realistic now.
  • Eliminate the wait for the buyer or their mortgage company to get the appraisal done on their own.
  • Create a clear understanding of the required marketing time to effect the sale. No longer do homes sell within hours or days. It takes weeks or months; if both agent and seller are informed, they are armed to make the right choices and negotiate from a position of strength. Experienced agents understand & agree

Many people are surprised when they find out the market value of their home is much more than they thought, so investing in a professional appraisal actually allowed them to receive several thousand more than they thought, from the sale. Others have an inflated opinion of their home's value and an appraisal helps them to realistically price their home in order for it to sell.  An overpriced home will not attract buyers, which means no offers and no closing and that you have wasted valuable time, money, and efforts. Thus, a sound appraisal actually Pays, rather than Costs, both seller/buyer and real estate agents on both sides of the transaction.

Real estate agents who say you "don't need" a pre-listing appraisal are really saying they choose to ignore this reality. Remember, the "boom" times "spoil" agents and sellers. When you sign the Listing Agreement, they're entitled to (typically 3%) of sale price, when any Agent (or you!) find a buyer and a sale closes. Should your listing agent be willing to risk a tiny fraction of his/her listing commission, along with you, to your mutual profit? Why not ask him/her to split the appraisal? In the past few boom years, sellers & realtors made enough that they didn't notice they might have "left money on the table". Sellers took quick sales to mean the realtor was very skilled. In truth, quick sales & increasing values are all about supply & demand, not about people  

Today's market trend is the opposite. Sellers need not only an experienced real estate agent, but an experienced appraiser as well. The main obstacle to pre-listing appraisal is so small, it seems ridiculous. Neither seller nor agent want to spend a few hundred dollars in advance of the sale. Does that say the listing agent is not sure a sale will happen? In your interview process, be sure your agent is experienced enough to realize the value of a pre-listing appraisal. 

*Because: 3,600 homes were listed for sale in our local MLS in April 2006, while only 600 were sold/closed. Most realtors are unaware of that crucial data.  Why? 85% of realtors, mortgage brokers & appraisers in SE Florida have only worked in the extremely unique "boom market" of the past few years. They simply don't Know a Normal market, as experienced people who've "been here" 

Sellers who initially over-price their homes report dissatisfaction with the process, and their agent in particular. Saving a few hundred in appraisal fees can cost agents and sellers tens of thousands, depending on market conditions. Many inexperienced agents (the vast majority in SE FL today have only 2-3 years experience) also figure if they list the home higher initially, you'll sign with them, reducing the price later. We tell you both the truth up front, to save you getting discouraged and "dumping" the home for less than it's worth, simply because the process takes too long when it's overpriced. 

On the other hand, we all remember reports of homes selling above listing price, after only days or even hours, on the market. That means, to an experienced appraiser, the home sold under market, again due to agent inexperience. Real estate agents' expertise is marketing; if they let the appraiser take care of valuation, seller and realtor can use the appraisal report to save them both time and money.   

Improvements to add value
In addition to “how much?”, there may be other important questions to ask yourself before listing your home.  Questions like ''Would it be better to paint the entire house before we sell it?”, ''Should I put in that third bathroom?'', ''Should I complete my kitchen remodel?'' Many things which we do to our houses have an effect on their value.  Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense.

We can step in and help make these decisions. Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells for. Our appraisal fees are based on efforts to complete the report (&/or liability) and not a percentage of the sales price. So a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

Contact us at 954-476-5085 for more information, or Office@CampbellAppraisal.com