The first step of an appraisal is a property inspection, where the appraiser takes notes about what the property has and what it's lacking. For example, if a home has 2 bedrooms and the market for the area usually demands 3 bedrooms, that would negatively affect the home's value. Appraisers also look for defects in the home that buyers typically ask to have fixed before they sign on the dotted line.
Then the appraiser sits down and crunches the numbers, comparing the house to others that have recently sold or are for sale in the neighbourhood. The appraiser gives the homeowner the facts: Information about the homes in their area competing for buyers, a list of things that may add value and appeal to the abode and, of course, a recommended listing price.
Appraisers are objective & can also discover problems that could delay a sale before you put your home on the market. Appraiser home review will cost between $200 and $500.
Comparative Market Analysis (CMAs)
After looking at the house, Sales Representatives usually start the process with a look around the neighborhood for comparable homes that were recently (usually in the past three months) sold in the area, along with pending comparables & expired comparables. As a Century 21 Sales Representative, I gather all the data & present my clients with a full CMA report booklet for them to peruse.
Determine The Right Time
Evaluate whether you really have to sell now. Some homeowners want to sell, but they don't need to. That means they can wait out a down market, or even wait for the "perfect" buyer. If you want to get the best possible price for your home and the local market. The downside of waiting: The market could decline or your circumstances could change to the point that you might need to sell quickly. But for situations where the move is optional (or you mightbe able to rent the property until your local market improves), waiting is a solid option.
Underpricing a home is a strategy that some employ to create a bidding war through multiple offers. A well-priced home is sure to get more showings than a home that costs more than the competition. More showings mean more exposure, which ups the chances of you receiving an offer.