Pre-Listing Market Value Appraisal
Another useful tool in addition to the CMA prepared by a Realtor is to obtain a Pre-Listing Market Value Appraisal. A Pre-Listing Market Value Appraisal gives the sellers a disinterested, third party opinion of their property’s value. This Pre-Listing Market Value Appraisal is a full appraisal using the Fannie Mae 1004 form and completed by a Certified Residential Appraiser/HUD-FHA Approved.
The appraisal includes:
This does not replace the lender’s need for a third party appraisal before closing. However, it should be similar and may be useful in resolving a dispute if the lender’s appraisal comes in lower that the sale price or Pre-Listing Market Appraisal.
Reasons for a Pre-Listing Market Value Appraisal:
1. A pre-listing appraisal provides a seller and a listing agent a realistic third party’s opinion of market value which will help set a realistic selling price so the property will attract buyers and sell quicker.
2. If a buyer comes in with a lowball offer you can choose to show them the appraisal to support your asking price.
3. Avoid finding out right before closing that your house does not appraise for the agreed on sale price. This would likely kill the transaction after everybody has made their plans on moving in or out.
4. Find out if there are any repairs that would be needed for an FHA loan.
5. Have an Appraiser’s accurate square foot measurement of the home.
6. Lastly, it does not cost you anything if you agree to price your home no higher than 5% above the pre-listing market value appraisal. I am paying the Appraiser’s fee as another way of providing you the best service in marketing, negotiating, and selling your home.
Having a Comparative Market Analysis by Realtor and a Pre-Listing Market Value Appraisal by an Certified Appraiser provides you with the information you need so that you can confidently make the best decisions on pricing your home.
NOTE: Keep in mind that a property usually cannot sell for more than the appraised value, but it may sell for less. Having an appraisal does not guarantee that a buyer will pay that amount.
To Get Your Home Appraised and on the Market Click Here.