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loki791 · Joined: 28 Feb 2009 Posts: 1 1.87 Dollars($)

I am considering putting my home on the market and moving in with my girlfriend. Obviously, I'm a little hesitant to do this in the current market and want to make sure that I get a good price for it. So I was thinking that before getting it appraised, I should probably get a professional home inspection first so that I can have the opportunity to make any repairs or upgrades that will increase (or at least maintain) the value of the property. Is this normal to do something like this? Or will an appraiser be able to tell me what a home inspector will -- in regard to the selling of the home? Also, I've done some research trying to figure out what I can expect from a home inspection, is there anything else to consider if the inspection is meant to lead to putting the home on the market? Thanks.

[Link deleted as per forum rules. Thanks.]

jameshogg · Posted: Sat Feb 28, 2009 11:36 pm Post subject:

Hi loki,

I feel you are taking the correct step by appraising the property before listing it in the market. This property appraisal will help you in getting a clear idea about the value of the property and thus you can get to know what you can expect from the sale of the property.

Thanks

apexoffice · Posted: Sun Mar 01, 2009 8:33 am Post subject:

Hey loki791,
You actually have a very valid concern because there are differences between a home inspection and an appraisal. While an appraiser will come and "inspect" the home, it is not generally to the same level that a home inspector will do. The purpose of the appraisal inspection is to get an opinion on the overall condition of the home and in comparison to other homes, develop an opinion of value. A home inspector will go into much more detail in the inspection and will let you know about major problems affecting the structure, electrical, plumbing, etc. or if any code violations exist.

Having said all of that, usually a potential buyer will get their own home inspection done before they buy it, so it may not be necessary for you to have one done now, unless you want an opportunity to fix any problems that exist before you market the property. If you do decide to get one done now, do it before getting the appraisal. If any major problems exist, the appraiser can let you know how those problems affect the value and if it will be cost effective to make the repairs or try to sell the property as is.

I hope this answers your question.

gmakerley · Posted: Tue Mar 03, 2009 12:05 pm Post subject:

i will piggyback on what benjamin has noted by saying that it's not necessary for you to get an appraisal, either. an appraisal is required when a buyer seeks a mortgage loan with which to make the purchase.

what you'll want to do, i would think, is to have a realtor go through your home and give you a value estimate. i agree that there's no better way to eliminate the issues you may have (in terms of condition) by having someone with a critical eye give you feedback, but i think it would be a bit extraordinary for a seller of a home to do his own appraisal. i think it makes more sense to do the inspection, frankly, since that's more intense and an inspector will find items that the appraisers would likely never seek out.

and believe me, benjamin, i'm not casting aspersions on the appraisal trade. i have much respect for your craft.

apexoffice · Posted: Tue Mar 03, 2009 5:09 pm Post subject:

I agree with you to some extent George. If he is planning to use an agent to market the property, then yes, the agent will provide information to justify their opinion of a reasonable list price, however, an agent is an advocate for their client and the valuation may be biased. An appraiser will be an unbiased independant third party. I always advise potential sellers and buyers to get both an appraisal and a home inspection completed. In this market, not having enough good information is like going to war without ammunition.

manoj_gopale · Joined: 16 Feb 2009 Posts: 488 0.00 Dollars($)

Guest

Hello--

I own an appraisal company in California and I would point out a couple of things.

First, the "inspection" an appraiser will do is strictly to determine overall quality of interior finish/upgrades/remodeling as compared to other potential comparable properties. The inspection is almost better called an interior viewing as it should never be the basis for structural soundness issues that often-times are not readily viewable to a casual observer. If you are looking to determine whether or not you have termite or foundation issues that are not necessarily evident to a typical viewer, then by all means get a home inspection from a qualified home inspector.

Second, while a realtor may be able to give you an idea as to what they would like to list your house for, what they would like to list it for is by no means the same as what the home is worth--which is entirely up to the buyer and not the Realtor who would like to make the largest commission possible. It all comes down to whether or not you are looking to determine what the home will likely sell for if marketed, or if you are looking to improve the appeal of your home by making some improvements prior to a listing.

In both the cases mentioned above, I would say hire an appraiser and engage them to do a limited appraisal. With a modified scope of work you can avoid paying for a full appraisal and instead get something more tailored to your specific needs. By being clear with your needs right out of the gate, a good appraiser will be able to give you a good idea as to what the property will sell for in "as-is" condition, or even get an idea as to what you could expect if you made some improvements before you list it.

Another key thing to consider in my view is, what does your time-horizon look like for this possible sale? If you are lucky enough to have lots of time to market this property (say over 4-6 months, then you may be well advised to hold out for the highest price possible--in which case going with a Realtor to give you their often-times "rosy" outlook on what your home will bring in an open market transaction. With lots of time and no pressure to sell by any certain deadline, you have the freedom to be selective in your approach. On the other hand, if you are in a position where you need to sell your property in a more reasonable time-frame, like say 60 to 90 days depending on what market you are in, then you'll need to pay close attention to your list price, which means price it with reasonable expectations for this challenging buyer's market.

I have seen several stubborn sellers that have just not come to terms with the fact that their property is worth much less today than it was just a year ago. Unfortunately, those same sellers are convinced--sometimes by a Realtor, sometimes on their own--that they need to hold out much longer than is prudent. The net effect often is having to settle for a much lower price in the end.

My recommendation would be to have an appraiser do a limited appraisal on your property and ask them to consider a few scenarios for marketing time. If you need to sell quickly, then you'll need to set your price much lower than if you have no real time-frame pressures. In both cases, the value of the home can be significantly different. Also ask the appraiser to comment on what upgrades or improvements will return the best investment given your time-frame. It may be that a fresh coat of paint and some well done staging may be just as effective as say pouring several thousands of dollars into updating a kitchen or the landscaping.

Again, all depends upon the conditions you are under when it comes to the time-frame for this possible sale. The buyer will be required to get a home inspection before they are able to finance the purchase--assuming they are financing--but in my 20+ years in the industry, I would say sales are far less scrapped by issues that arise out of home inspections due to disclosure requirements, than a sale not being consummated because of a seller's unrealistic sales price expectations.

So much for "Quick Reply"...good luck.

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