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Should Sellers Obtain an Appraisal?

 

 

 

 

Most of today’s sellers in the GTA are very knowledgeable and eager to do whatever it takes to extract as much money as possible from the sale of their home.  With a little coaching and prodding, they are willing to work closely with their Realtor to unclutter, clean up and stage the home to attract qualified buyers.  Sometimes, they are willing to take additional steps, when necessary, to gain a competitive edge over other sellers fighting for the attention of would-be buyers.

 

In keeping with the philosophy that in order to make money you must spend money, sellers often ask if they should obtain an up-to-date appraisal of the property to determine value. Furthermore to use it as a tool to present to buyers and validate the asking price.  The truth is that an experienced Realtor with in-depth knowledge of the local market and micro markets should have no trouble in determining the appropriate listing price for a home.  With their hand on the pulse of the local market, Realtors are in the best position to pinpoint true market value of a property at a given point in time.

 

Some sellers believe that having a current appraisal will attract buyers and bolster the buyer’s need to believe that they are not overpaying for the home.   Most buyers have lenders, and for their due diligence lenders require formal appraisals on property before advancing funds.  Lenders need to rely on some evidence that the money they are advancing does not exceed the value of the property. Such evidence comes in the form of an impartial professional opinion on value that serves to protect the equity in the home.  For this reason, there is little chance that the buyer or their lender would rely upon a seller’s appraisal.

 

The consensus among Realtors is that while a seller’s appraisal is definitely not a necessity, nervous sellers who do not mind spending the money may benefit from the added assurance that an appraisal provides.  There is comfort in believing that you are selling your house for the best possible price given market conditions at the time of sale. 

 

 

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