Pre-Listing Valuation
A pre-listing appraisal estimates the value a seller may obtain before listing a home for sale.
In many cases, a pre-listing appraisal can be constructive even if you have already obtained a comparative market analysis (CMA) or (BPO) Broker's Price Opinion. An Appraiser and Realtor have different training and standards they work from, which can result in delivering different estimates. A Pre-Listing Appraisal is an inexpensive Second Opinion if an owner disagrees with an agent or may be used if a property has been on the market for a while and can help determine if or how much to lower an asking price.
An Appraiser sets values by working primarily with recently sold comps within a limited surrounding area. At the same time, a Realtor typically looks to other active listings over a greater distance that your property will be competing against. There are two other things to consider in setting a listing price with an Agent: 1) as a salesman, your realtor works on commission, and 2) is potentially competing against other sales help. These two factors can lead to higher listing prices and longer listing times. An appraiser's objective, third-party opinion can confirm or deny the other's valuations and should be considered, especially when a faster sale is needed.
Reasons to obtain a Pre-Listing Appraisal include:
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Get confirmation or denial of Listing Price accuracy
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Understand how your property rates versus competitors
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Pre-listing appraisal are typically more accurate than AVMs
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Obtain a value from an independent Third Party