How to Price Your FSBO Home Right with a Professional Appraisal

Selling your home for sale by owner (FSBO) can save you money on agent commissions, but it also requires you to do your own research and marketing. One of the most crucial tasks you have to do as a FSBO seller is to price your home correctly.

If you price your home too high, you may scare away buyers and make your home sit on the market longer. If you price it too low, you may lose money and credibility. That’s why getting a professional appraisal from a qualified appraiser is a smart move for any FSBO seller.

What is a professional appraisal and why do you need one?

A professional appraisal is an unbiased and objective opinion of the market value of your home, based on its location, condition, features, and recent sales of comparable properties in your area. An appraiser will inspect your home, measure its size, take photos, and research the local market data to determine its value.

A professional appraisal can help you:

Set a realistic and fair list price that reflects the current market conditions and attracts qualified buyers
Negotiate with confidence and authority with potential buyers and their agents, who may try to lowball you or question your asking price
Provide proof of your home’s value to lenders, who may require an appraisal before approving a mortgage for the buyer
Avoid legal disputes or liability issues that may arise from misrepresenting or omitting information about your home’s condition or value

How to find a reputable appraiser for your FSBO home

You want to hire an appraiser who has the credentials, experience, and knowledge to provide an accurate and reliable appraisal for your FSBO home. Here are some tips to find a reputable appraiser:

Look for an appraiser who is licensed or certified by your state’s regulatory agency, and who follows the Uniform Standards of Professional Appraisal Practice (USPAP), which are the ethical and professional guidelines for appraisers
Check the appraiser’s qualifications, education, training, and membership in professional associations, such as the Appraisal Institute or the National Association of Independent Fee Appraisers
Ask for references from previous clients or other professionals, such as real estate agents, attorneys, or lenders, who have worked with the appraiser
Compare fees and services offered by different appraisers, and make sure you understand what is included in the appraisal report and how long it will take to complete

How to use your professional appraisal to sell your FSBO home faster and for more money

Once you have your professional appraisal in hand, you can use it as a powerful tool to sell your FSBO home faster and for more money. Here are some ways to leverage your appraisal:

Use it as a basis for setting your list price, which should be within 10% of the appraised value
Highlight it in your marketing materials, such as flyers, brochures, online listings, social media posts, etc., to show buyers that you have done your homework and that your price is fair and realistic
Share it with potential buyers and their agents when they inquire about or visit your home, to back up your asking price and answer any questions they may have about your home’s value
Use it as a bargaining chip when negotiating with buyers who make low offers or request concessions or repairs
Provide it to the buyer’s lender when they request an appraisal for financing purposes, to expedite the approval process and avoid delays or discrepancies

Frequently Asked Questions (FAQs)

Do I need an appraisal if I already have a comparative market analysis (CMA) or an online valuation tool?

A CMA or an online valuation tool can give you a rough estimate of your home’s value, but they are not as reliable or accurate as a professional appraisal. A CMA is based on the opinion of a real estate agent, who may have a vested interest in the outcome of the sale, while an online valuation tool is based on algorithms and data that may be outdated, incomplete, or inaccurate. A professional appraisal is based on the independent and objective judgment of a qualified and experienced appraiser.

How can I prepare my home for the appraisal?

You can prepare your home for the appraisal by making sure it is clean, tidy, and well-maintained. You can also make minor repairs or improvements that can boost your home’s value. You should also gather any documents or information that can help the appraiser.

Can I challenge or dispute the appraisal if I disagree with it?

If you think the appraisal is inaccurate or unfair, you can challenge or dispute it by providing evidence that supports your claim. For example, you can point out any errors or omissions in the appraisal report, or provide additional data or information that the appraiser may have missed or ignored.

How long is the appraisal valid for?

The appraisal is valid for as long as the market conditions and your home’s condition remain unchanged. However, most lenders will only accept an appraisal that is less than six months old for financing purposes.

Where can I find a reputable appraiser for my FSBO home?

One of the best ways to find a reputable appraiser for your FSBO home is to contact Residential Appraisal and Valuation Services (RAVS), a leading provider of professional appraisals for FSBO sellers. To learn more about RAVS and how they can help you with your FSBO appraisal, visit their website at www.residentialavs.com or call them at +1617-910-3700.

We would love to work with you.