One of the most important jobs for your Realtor is to determine the value of your home by developing a Comparable Market Analysis, which will be used in pricing the home for the right amount. Some Seller’s will interview more than one agent for the job of selling their home, be careful in selecting the one that gives you the highest amount. If you have a huge difference in the amounts being recommended it may be worthwhile to get an independent appraisal of your home to establish market value.
If your property isn’t attracting serious shoppers, your Realtor may recommend that you invest in an appraiser to get a second pricing opinion, as the appraiser will come in with an independent, unbiased opinion to help ensure your price is correct for the market.
An appraisal is important in today’s market especially, because it’s an objective and unbiased valuation of your home. Taken from the Appraisal Institute of Canada’s web site “Appraisal Institute of Canada Designated Members are real estate appraisal professionals who play a direct and vital role in the real estate sector. That role is to determine, report upon, and attest to the real value of property.” The big difference is the appraiser is not invested in your selling process and is working for a fee as opposed to a commission. As Realtors it is sometimes hard to give a strong opinion of the real value of your home, home owners will choose the Realtor who gives them the highest opinion of value for their home.
Appraisals allow for homeowners and buyers to establish “fair market value.” In addition, an appraisal allows a lender to know how much they can safely lend.
“Credible opinions of value can help to stabilize the real estate market,” says Joseph C. Magdziarz, president of Chicago-based Appraisal Institute, a global membership association of professional real estate appraisers. “Appraisers today are doing the same thorough, fact-based research and analysis they have always done.”
A home appraiser will compare the condition of your house in relation to the comparable properties in the neighbourhood and will give you a reasonably good idea where your house fits in relation to recent sales.
Remember, you needn’t agree with the outcome of an appraisal. You and your Realtor can work with the figures and determine if you should change the asking price or not. A home appraisal, no matter how scientific, still ends up being the opinion of the appraiser and to some degree is a judgment call. Just be cautious because when it comes to the Buyer seeking financing of your home the approval will be based upon the independent Appraisal. So Price it right!