If only selling a home was as easy as planting a For Sale sign in the front yard.
The truth is, before you ever plant that sign, there are several other steps a seller must take to enjoy a successful (and relatively stress-free) real estate transaction. One of those steps is a home appraisal.
Whether you’re considering whether to sell your home or stay put, or you’ve already committed to listing your property, you’re in the right place.
In today’s post, we’ll share our tips on how to appraise a home. Taking a minute to read these tips will save frustration later in the home selling process.
Why Do I Need a Home Appraisal?
With the laundry list of tasks, home sellers need to handle before closing day, you might wonder why you need an appraisal in the first place.
The answer is simple—it’s an essential part of a real estate transaction! Appraisals are so vital that most lenders won’t underwrite a home loan without one.
The seller (you) needs an appraisal to ensure that the home sells at a fair market value. A home appraisal also gives you the confidence that you’re doing what is necessary to ensure you don’t lose money on the sale of your home.
Appraisals are usually performed by a real estate appraiser who has experience in the home’s region. After completing the appraisal, it’s submitted to the lender.
How to Appraise a Home Yourself
Why can’t you just do some research yourself and let your real estate agent know what the property is worth? No matter how robust your analysis is, it will not always give you or a prospective buyer an accurate idea of what your home is worth.
Many buyers are under the mistaken impression that they are buying their dream home. In reality, many buyers end up buying a house that costs much more than their budget allows.
Home sellers like you can help prospective buyers by performing an accurate home valuation before your listing goes public. One realtor, Kendra Hudson, offers clients a nifty home valuation tool designed to take the confusion out of the home valuation process.
What Professionals Look for During Home Appraisals
When you list your home, you’ll work with a team of professionals who have one focus: making sure both parties in the real estate transaction get what they’re hoping to get.
While you may end up including a professional home appraiser on your team, you can look at your home through an appraiser’s eyes before you ever list with a real estate agent.
Here are the main things you’ll look at when considering the value of your home:
- Condition
- Location
- Age
- Exterior and Interior
- Design
- Size
- Home improvements
- Safety features
This list shows the main components of the physical condition of a home. An appraiser also looks at comparable homes in your neighborhood, including size and recent sales prices.
Ready to Sell Your Home?
Now that you’re more familiar with how to appraise a home, you’re one step closer to strategically placing that For Sale sign. Your buyers will thank you for taking the time to thoughtfully consider your home’s value before they ever step through the front door.
If you’ve enjoyed today’s post, come back and visit our archives. You’ll find even more helpful tools to make the home buying and selling process more enjoyable.
