If you’re getting ready to sell your home you’ve probably heard the term real estate appraisal being tossed around. A home appraisal is where a professional comes in a evaluates your home and makes an estimation on its value.
While it can help if you’re a seller feeling totally in the dark about your home’s value or you have a very unique piece of property, a real estate agent is more than capable of giving you an accurate value estimation.
Scott Vanderspeak is a professional real estate agent who helps clients buy and sell their homes in Surrey, British Columbia. In this article, you can find out the benefits of an appraisal, its potential downfalls and answers to the most commonly asked questions.
Should you get a real estate appraisal before listing your home?
There are some positives and negatives to having a professional appraiser come evaluate your home before listing.
The benefits of a home appraisal
- Streamline price negotiations during that stage of the sale and also gives the seller leverage to hold their ground on their asking price.
- If you are going through a divorce and need to know the value of the home, an appraiser can give you that information. This will help you decide on a fair list price or give one person a good idea of whether they can afford to buy the house outright.
- If you are unhappy with the estimate that the appraiser gives you, it will give you an idea of where you can potentially improve your home and add value through upgrades.
The drawbacks of a home appraisal
- You will have to pay out-of-pocket for the real estate appraisal on your home which can cost anywhere from $300 to $500. This is unlike the usual appraisal that is commissioned by the buyer prior to the sale of the house.
- A home appraiser won’t typically be necessary to price the home accurately. A real estate agent can help guide you towards a listing price based on current market research.
- Buyers aren’t all too likely to trust a home appraisal that is obtained by the seller themselves. They may have a distrust of the evaluation because it came from someone they didn’t hire or wasn’t done through their bank.
How to get a real estate appraisal
If you don’t have a real estate agent and therefore are looking to get your home appraised, here is a breakdown of the process.
1. Find a trusted real estate appraiser
When looking for a home appraiser you must ask about their professional designations and whether they are licensed or certified, as well as how long they have been in the business. You can ask the appraiser their level of experience with your type of home in terms of its style, age and layout.
2. Clean up your home
You want your home to look its best when the appraiser comes to visit. You should take care of those minor repairs that you’ve been putting off and invest in improvements that will add value or marketability to your home.
3. Schedule the home appraisal
Now it’s finally time to book the appraisal! The cost of a real estate appraisal will depend on your location but you can expect to pay anywhere from $300 to $500+ depending on your home. Be sure to have all the documents regarding any home improvements over the past 10 to 15 years, including remodels, upgrades and any new additions.
4. Review the appraisal report with your real estate agent
When meeting with the appraiser after they have completed their inspection, you can ask to go over their report. This way you can ensure that the appraiser took into account the improvements you’ve made, the proximity your house is to schools, parks or recreational areas.
A real estate agent will already take those factors into account when deciding on a price for your home, which is why we rarely suggest doing your own appraisal. It is wise however to schedule an inspection prior to selling, this will speed up the selling process and show buyers that you’ve already addressed any issues with the home.
I’m ready to sell my house
Scott Vanderspek is a Surrey real estate agent who wants to help his clients and members of the community better understand the home buying process. Even once you have purchased your home, you can always reach out to Scott for advice.
If you are looking for a house for sale in Surrey, you can reach out to Scott to help you find your dream home. Have questions regarding real estate appraisals? He can help you with that too.