Should I Get an Appraisal Before Selling My House or Use a CMA?
Anytime a house sells to a buyer who is financing their purchase, the lender will require a third-party appraisal to verify the value of the property and determine what they’re willing to lend. As a separate matter, sellers also have the option to get their own pre-listing appraisal for the purpose of setting an asking price. That begs the question: Should I get an appraisal before selling my house? Is it even the best way to price a home? When might a pre-listing appraisal make sense?
While an appraisal is one method of assessing home value, it isn’t the typical way to decide on a listing price. Normally, a top real estate agent’s comparative market analysis (CMA) is all you need to gauge what a buyer is likely to pay for your home, saving sellers between $300 and $400 extra expense of ordering an appraisal.
What’s more, a CMA is highly reflective of current real estate market conditions for your area. And you can always get a free online home value estimate as a starting point. However, certain scenarios may justify obtaining a pre-listing appraisal. In this guide, we cover what those special circumstances may be so you can make an informed decision.
