Understanding the true value of a home is critical for both buyers and sellers. A home appraisal is an important piece of a buyer’s mortgage application process and is always required by lenders. However, sometimes sellers are interested in conducting their own home appraisal to determine what a home is actually worth before setting an asking price.
While there are some instances where a seller appraisal is useful (and even necessary), they’re not always advantageous. Here are some things to know before seeking a seller appraisal.
Examples of When Sellers Should Consider An AppraisalnA buyer’s lender will require an appraisal, so paying for your own can be a waste of time and money in many circumstances. Instead, your agent can use comps (comparable nearby home sales) to help set your sale price. However, there are a few uncommon circumstances when a seller appraisal should be considered:
Why A Seller Appraisal Might Be A Waste Of TimenUnless your home possesses extraordinary or unique features, a seller appraisal might be a waste of time for two reasons:
Seller appraisals do have a purpose, but for the vast majority of consumers, they’re not necessary. Instead, work with your agent to study local comps and determine the best market price for your property.