One of the 4 pillars to my exclusive W.I.S.E. (warranty, inspection, staging & evaluation) is an appraisal. It may be the most important part of the program. Price is part of marketing. It’s estimated that price is 70-80% of the overall reason a home sells. Getting the price right from the beginning is paramount. So why do I recommend a professional appraisal? Why can’t the Realtor just give me their opinion of price using a CMA-comparative market analysis?

A professional appraisal for the purpose of marketing your home can be a valuable tool in several ways.

Number one, it will help you as the homeowner set a realistic price. The appraiser is an unbiased third party. They have nothing to gain or lose in the sale of your home. A Realtor on the other hand does have something to gain by telling you what you want to hear. This is called "buying the listing". A less than professional Realtor will tell you a price in order to gain the listing and then later push you for numerous price reductions. Ultimately your home will sell for less than it would have if it were priced correctly from the beginning.

Number two, the appraisal can help you defend your price. For example, lets say your home appraises for $350,000 and you list it for $349,900. A buyer has interest and makes an offer of $320,000. The appraisal can then be used in the counter offer phase to compel the Buyer to be realistic. You will also have confidence in your price position, instead of questioning yourself or your Realtor.

An appraisal will be an investment of about $300. It’s a marketing cost and well worth the expense. If you are reluctant to get an appraisal, my guess is that you are fearful of the result. The appraisal is not public knowledge, nor does it have to be. You can keep the appraisal to yourself.