Should I have my home appraised or inspected before I list it?
It’s not uncommon for those looking to sell their home to ask if they should have an appraisal or an inspection done on the property before it’s listed.
Let’s take a closer look at the options with each.
Appraisals
When it comes to appraisals, Seda Real Estate Group Listing Agent Becky Seda says while there are some instances where that could be beneficial, as a general rule it’s not usually necessary.
“A real estate agent can run numbers on your home similarly to how an appraiser would, so you can have a good idea of the value,” Seda said.
In most transactions, a buyer’s lender is going to order an appraisal. Even if you were to purchase one before, the appraisal ordered by the buyer’s lender will be what is used moving forward.
A case where an appraisal might be helpful before listing is when the property has something unique about it.
“If you are on a property that is on 200 acres and the house was added onto several times — this part was built in 1945 and this part in 1984 — maybe there’s a barn or something else, an agent will be able to price that for you, but getting an appraisal beforehand may give you a sense of security,” Seda said.
However, if your home is a typical 3 bedroom, 2 bathroom in a neighborhood of 3 bedroom, 2 bathroom homes then it’s going to be fairly simple for your listing agent to price it effectively.
Another thing to remember about appraisals is that there are different types.
If you have refinanced your home that appraisal is likely going to be different than an appraisal that is determining the property value for sale.
Also, if an appraisal was done months or even years ago it is likely too far outdated to be trusted today.
Ultimately, your listing agent can help to guide you through this decision making process. They are trained to determine a property’s value as part of the listing service.
Inspections
When it comes to inspections, there’s a little more to consider. In many cases, purchasing a home inspection before listing a property can be beneficial.
“I would say, if you have lived in your home longer than 15 or 20 years I really would recommend you go ahead and get an inspection on the property,” Seda said.
If you live in Oklahoma, a buyer will have your home inspected, once it’s under contract. They will choose the inspector, which means they are going to trust that person’s evaluation of your home.
The benefit to getting an inspection before listing is:
- You can catch larger issues beforehand and make repairs or even pricing decisions with that knowledge in hand.
- You will have more say in how issues are handled. Once under contract, a buyer gets to negotiate those decisions. You may not always like or agree with their decisions.
- You can start any insurance claims that might otherwise slow down the closing process.
Case in point, say you find termites during an inspection. If you find it before a contract is signed then you can choose what type of treatment to do. Once under contract, a buyer will have a say in that treatment, which could become a point of contention.
It’s important to note inspectors will always find something during an inspection. If it’s a bunch of little stuff you might not worry about it too much, because you can use that for negotiation power. However, if they find something big then it could save you a lot of frustration, and even money, to know ahead of time.
Whether it’s an appraisal or an inspection that you are considering purchasing before you list your home, it’s best to discuss it with your listing agent. They can help guide you through the process to determine if it’s worth the cost.
Have questions? Our team is here to help. Give us a call at 405-400-9973 or email us at contact@sedarealestategroup.com.