Real Estate Appraisal (hardwood floors, for sale by owner, refinancing)

[juliet108]

We're about to put our house on the market for sale by owner. I would like to get an appraisal since I have no idea what to list it for.
Can anyone recommend someone? And about how much will it cost?

Thanks.

[Elizabeth_G]

I just looked over several closing statements and the average has been about $450. A few were $375 and one was $500...most were $450. I have an appraiser that works next door to me. I'll see him in the morning and see what he would charge. I'm sure it will depend on the size/location of your home.
Do you know how many square feet you have, approximately? Let me know and I"ll message you after speaking with him tomorrow

[juliet108]

It's about 2000 sq ft.
Thanks!

[Rakin]

Are you not going to work with a RE agent ? That's part of the services they provide.

Sorry, just read the FSBO comment.

[Elizabeth_G]

juliet108: Just sent you a DM

[Maximum Entropy]

You should be able to get an appraiser for $300, maybe less (they are getting hungry in this new AMC world). The reason the HUD price is so high is because of AMC fees (appraisal management companies). The lender charges the borrower $450 and pays the appraiser $250. The banks are hiding these fees (because they own the AMCs) on the HUD.

Personally I would not hire an appraiser unless you are just looking for peace of mind. Instead take a Sunday and visit your nearby competition. Then price your house based upon how your feel you compete. This will also give you an idea of what you need to fix or upgrade or advantages you can push.

The smart thing to do is hire a knowledgeable agent. A good one can be worth their weight in gold. For example, if you install new hardwood floors an appraiser will tell you that this does not add any value to the house (and they would not be wrong from their point of view. Generally there is not a line adjustment for new floors, although it may alter the comparables. To appraisers the new floors just brought the house up to it marketing level). An agent however will recognize how this will help you sell your house quicker (a time value of money).

Also, with an appraisal, make sure you understand the value in relationship to time. All value has a time component. For example the appraised value can be $100,000 with a reported typical exposure time of 6 months. Slide the exposure (now marketing) time and the value moves. If you are willing to wait longer the value increases; in a hurry and the value declines. So a $100,000 appraised value is not static against your expectations. Day 0 value is not $100,000. This is a small thing but it does cause people to leave money on the table.

If you must use an appraiser be sure to get one that understands how to price a house (and there are some good ones out there).

[BobWallace]

I don't think an appraisal will be worth the money for pricing your house.

Interview some real estate agents about listing. Tell them up front you want to try to sell by owner, but if that doesn't work you will hire an agent. Let them give you their pitch regarding why they should be helping you sell your house. Their pitch should include a market analysis that will give you a better idea about pricing than an appraisal.

[LCTMadison]

I agree with BobWallace....

I am refinancing my house, and just had it appraised. It appraised MUCH higher than I would ever list it for. You are looking at about $350 for a conventional appraisal. You will not pay as much as someone who is purchasing because part of the cost of appraisal through a lender is the service they have to now go through. $450-$500 is extremely high, I have not had any that high, except I have seen some brokers upcharging on the appraisals.

I would interview 2-3 experienced agents, and don't go with the one who gives you the highest list price, or offers up a bunch of gimmicks (which are RAMPANT right now).

Unfortunately, gimmicks don't sell houses.

Get it show ready, sparkling, and price it right.....that is the key to successful sales.