Should You Get an Appraisal Before Listing Your Home?
Here’s What Sellers Should Know
When preparing to sell your home, one of the most important decisions you’ll make is how to price it. Set the price too high, and your listing may sit on the market with little activity. Set it too low, and you risk leaving money on the table. So how can you be confident you're pricing your home right from the start?
One option is to get a pre-listing appraisal. At Bay Realty Michigan, we believe in getting the price right from the beginning—which is why we’re willing to reimburse sellers for half the cost of a professional appraisal at closing.
Here’s a look at the pros and cons of getting an appraisal before putting your home on the market:
1. Accurate Pricing From Day One
An appraisal offers an objective, third-party opinion of your home’s value based on comparable sales and market data. This helps reduce guesswork and sets a realistic price from the beginning.
2. Stronger Negotiation Position
With an appraisal in hand, you’ll have data to back up your asking price. This can be helpful when negotiating with buyers or justifying value in a competitive market.
3. Reduced Time on Market
Homes that are priced correctly tend to sell faster. An accurate price can attract more qualified buyers early on and avoid the need for price reductions later.
4. Builds Trust with Buyers
While you’re not required to share the appraisal results with anyone, choosing to do so can demonstrate that you've done your homework and are committed to a fair, well-informed sale. Sharing the appraisal with a potential buyer can increase their confidence in the property’s value and strengthen your position during negotiations.
5. Helpful for Family Agreements
When a property is owned by multiple family members, opinions on value can vary widely. A professional appraisal provides a neutral, fact-based valuation that can help settle disagreements and support unified decision-making.
6. Leverage if Buyer’s Appraisal Comes in Low
If a buyer’s lender-ordered appraisal comes back lower than expected, having your own pre-listing appraisal can serve as credible evidence to dispute or challenge the bank’s valuation. This could help protect your sale price and keep the transaction on track.
1. Out-of-Pocket Cost
A typical residential appraisal costs between $400–600. While it’s a worthwhile investment, it is an upfront expense.
2. Not Always the Final Say
Buyers using financing will still be required to get their own lender-ordered appraisal. If their appraiser values the home differently, it could affect the deal.
3. Market Can Change Quickly
If you wait too long to list after the appraisal is done, market conditions may shift, and the value could become outdated.
To make this decision easier, Bay Realty Michigan will reimburse sellers for 50% of the appraisal cost at closing. It’s our way of helping you feel confident in your pricing strategy while avoiding costly delays or mispricing.
If you're interested in learning more about how a pre-listing appraisal can benefit your sale—or if you'd like a free market analysis to get started—contact us today.
Let’s make sure your home hits the market with the right price and the right plan.