Step 4 To Selling a Home: Obtain a Pre-Market Inspection and/or Pre-Listing Appraisal

We are big believers in pre-market inspections and appraisals, especially for single family homes. This means you pay an inspector to inspect your home and possibly an appraiser to conduct a market-value appraisal for your home, before it goes on the market. 

Why a Pre-Market Home Inspection?

Even the most meticulous homeowner may have some defects in their home or repairs needed that they may not know about. A pre-market home inspection doesn't necessarily mean that the buyer won't opt to do their own inspection -- they most likely will. However, a pre-market inspection can help you, as the seller, in a number of ways. 

1. The buyer may enter into the contract with more confidence. A buyer who feels that the seller has been more responsible with preparing the home for market may make a higher/better offer, especially if they've been "burned" before by getting into a contract, paying for an inspection, and having to walk away after a bad inspection. Some buyers may even waive doing their own inspection if they can read your inspection report. 
2. In multiple offers, a buyer may be willing to make an as-is offer or shorten their due diligence/inspection period. A savvy buyer may "sweeten the deal" if they feel you've been diligent and have come to market prepared. 
3. We will know about any unpleasant surprises and have an opportunity to fix them...before they show up in a buyer's report. We will be able to make repairs to your home before they potentially scare away a buyer.
4. A buyer may choose your home over another, similar home, if they feel you've been more proactive. A pre-market inspection shows you care about your home and want to deliver "a good product" to your buyer.

The cost for this is usually between $400 – $700, but it can definitely be money well spent to highlight your home in a more favorable light than your competition. If you’d like to do a pre-market inspection, let me know and we will provide a list of our trusted home inspectors and help you arrange for it. If you want, we can even be present for the inspection so you don’t have to take any additional time off work.  

Why a Pre-Listing Appraisal?

We don't recommend a pre-listing appraisal for every seller, but we may discuss one with you for a variety of reasons.

1. If your property is unique. For unique properties, comparable sales can be difficult to find, which not only can make pricing difficult or extremely subjective but also can make it difficult for a buyer (or their agent) to see the value that we see. 
2. If comparables are scarce. In a true Seller's Market, listings can be hard to come by, which means that consequently sales of homes that are comparable to yours may also be scarce.  
3. If your sale will not be an arms-length transaction. If you have hired us to assist you with a sale to a family member or a business associate or another party that creates a non-arms-length transaction, a property appraisal may be a fair and objective way to come to an agreement about the value of a property.
4. If there is something wrong with the property. Oftentimes, we list properties for a family member who has inherited a home they've never lived in or a home that is in extensive need of repair, for example a fixer-upper or a property that is part of an estate or a trust. In cases like these, while there may be similar homes nearby or in the same neighborhood, the subject property may be -- for so many reasons -- very different, making the valuation process very different than the other recent comparable sales.

A pre-listing appraisal will cost you around $425 (for most properties, unless it is a very large home or on a very large plot of land) but it could put thousands more dollars in your pocket. A pre-listing appraisal doesn't mean that you will necessarily get that amount of money for your home, but it does give us a baseline for the most we can expect to get and it gives us a possible starting point for your listing price (and the ability to market the home "based on recent appraisal"). The bottom line is this: a buyer may not believe what I say your home is worth; they won't believe what you think your home is worth; they may not even believe what their agent tells them it's worth... However, they will very likely believe what a third-party, non-biased party has said the home is worth, and that is priceless.

Questions? Call us at 404-994-2181 or Maura(at)BuySellLiveAtlanta(dot)com.