The Problem: Leaving Money on the Table
If you’re selling your home, you want to get the best possible price for it. But inaccurate home values can result in leaving money on the table. Many homeowners rely on their realtor’s Comparative Market Analysis (CMA) to determine their home’s value, but this approach can have its flaws.
For one, realtors may have an incentive to overvalue your home to secure your listing. Additionally, many CMAs ignore expired listings, which are the best indicators of a potential value ceiling. Others take into account only properties that have sold in your area which are simply not truly comparable which skews the value. Others don’t necessarily account for unique features or upgrades your home may have. Not a single one measured the home, which should be unacceptable to you. We have measured over 8,000 homes and more than half varied significantly in square footage from their assessment record.
This is where the appraisal gap issue comes in. If a buyer’s lender orders an appraisal and it comes in lower than the agreed-upon sale price, the buyer may not be able to secure financing for the full amount, resulting in a lower offer or the sale falling through altogether.
The Solution: Hire an Independent Appraiser
To avoid the appraisal gap issue and the pain of leaving money on the table, consider hiring an independent appraiser to perform a pre-appraisal or pre-listing appraisal. Unlike a CMA, an independent appraiser will provide an unbiased and accurate assessment of your home’s value based on factors such as accurate square footage, location, quality, condition, lot utility, amenities and using recent comparable sales and active listings
An independent appraiser’s report can help you set a realistic asking price and avoid overvaluing your home, which can lead to a longer time on the market (stale listing stigma) and potentially lower offers. It can also help you negotiate with buyers and their lenders if an appraisal gap issue arises.
The Benefits of Independence
While it may be tempting to rely solely on your realtor’s CMA, hiring an independent appraiser has several benefits.
First, an independent appraiser has no vested interest in the outcome of the appraisal, so you can trust that their assessment is unbiased and accurate. Additionally, their expertise and knowledge of the local market can help you make informed decisions about pricing and marketing your home.
Finally, an independent appraiser’s assessment can provide peace of mind during the selling process. Knowing that you’ve done everything possible to set a fair and accurate price for your home can make the selling process less stressful and more successful.
Take Action Now
If you’re planning to sell your home, don’t leave money on the table. Consider hiring an independent appraiser to perform a pre-appraisal or pre-listing appraisal. This step can help you avoid the appraisal gap issue and ensure that you get the best possible price for your home.
To find an independent appraiser near you, search online or ask for referrals from friends, family, or your real estate agent. Taking this proactive step can make all the difference in a successful home sale.
**Contact us today at 617-517-3711 or firstname.lastname@example.org to schedule your pre-appraisal or pre-listing appraisal with one of our independent appraisers. Don’t risk leaving money on the table.**