Do I need an appraisal before selling my home? That’s a common question homeowners ask when considering putting their property on the market. Many sellers assume they need to hire an appraiser before listing their home, but in most situations, that’s simply not necessary.
What Is a Comparative Market Analysis?
A Comparative Market Analysis, commonly called a CMA, is prepared by a real estate professional to help determine a property’s current market value.
A CMA considers several important factors:
- Recently sold homes similar to yours
- Homes currently listed for sale
- Your home’s location, size, age, and condition
- Improvements and updates made to the property
- Current buyer demand and local market conditions
This information helps establish a realistic price range based on what buyers are paying for comparable properties.
IMPORTANT: A Comparative Market Analysis (CMA) is not an appraisal and should never be considered or represented as an appraisal. A CMA is a real estate professional’s opinion of current market value based on comparable properties and market conditions. It is not a substitute for a formal appraisal performed by a licensed or certified real estate appraiser.
When Does a Home Need an Appraisal?
When a buyer purchases a home using mortgage financing, the buyer’s lender will typically require an appraisal or another lender-approved valuation.
This generally happens after the seller has accepted an offer and the property is under contract.
The lender uses the appraisal to help determine whether the property’s value supports the amount being financed.
An appraisal purchased by the seller before listing generally cannot replace an appraisal required by the buyer’s lender.
That means you could spend money on an appraisal before listing, only for the buyer’s lender to require a separate valuation later.
Is Paying for an Appraisal Before Selling Worth It?
For most typical residential home sales, I generally do not recommend that sellers spend money on an appraisal before listing.
A well-prepared market analysis provides valuable information for determining a competitive asking price. It also considers current listings, recent sales, and local market activity that influence how buyers view your property.
There are situations where a formal appraisal may be appropriate, including estate matters, divorce proceedings, legal disputes, or properties with unusual characteristics.
However, for most homeowners simply considering selling, a professional market analysis is usually a practical first step.
Before putting your home on the market, it’s also helpful to understand the steps involved in preparing your property. Read my article, What to Do Before Listing Your Home, for additional tips.
Who Determines the Asking Price?
Ultimately, the homeowner makes the final decision about the asking price.
As a real estate professional, my responsibility is to provide an informed opinion of current market value, explain the comparable sales, and help sellers understand the market.
The goal is to position the property competitively while allowing the seller to make the final decision.
Find Out What Your Susquehanna Valley Home May Be Worth
If you’re considering selling your home in Danville, Lewisburg, Bloomsburg, Selinsgrove, Sunbury, or the surrounding Susquehanna Valley communities, you don’t necessarily need to spend money on an appraisal to get started.
I’m Joseph A. Humphrey, Associate Broker with Century 21 Mertz & Associates. I’ve been working in real estate since 2007, helping homeowners understand local market conditions and make informed decisions about selling their properties.
Whether you’re ready to sell or simply curious about your home’s current value, I’d be happy to help.
Request your home value review at GetMySVHomeValue.com.
Joseph A. Humphrey, Associate Broker
Century 21 Mertz & Associates
430 Mill Street, Danville, PA 17821
Office: 570-275-2121
Cell: 570-259-7547