Whether you’ve just started the process of looking for a real estate agent to help sell your home in Seattle, WA, or you’re just a curious buyer, it can be a good idea to know how much above appraisal you should list your house for.
For a property in an in-demand neighborhood with new upgrades, you could list and sell your house for 1%-3% above appraisal. However, this isn’t a cut-and-dry rule. Pricing your property above appraisal requires some careful thought and could lead to complications if your buyer is taking out a loan, all of which will be explored in this Redfin article.
In this article:
What is an appraisal?
Should I get a pre-appraisal?
Keeping the terms straight
How to increase appraised value?
How to sell a home for more than the appraised value?
The bottom line: listing above appraisal
What is an appraisal?
An appraisal is a determination of the fair market value of a home. It’s often ordered by the buyer’s lender if they are financing the purchase. Appraisals are used by the lender to determine if the asking price is fair for the property and if they are willing to take on the risk of loaning the money to the buyer. The seller can also benefit from the appraisal, so they can know whether they are also getting a good deal or not.
A home appraisal takes into account the entire picture of your property, from comparable homes and their sale prices to any special features your home has. Here’s what can influence your appraisal:
- Comparable homes nearby and their selling price
- Local market conditions
- Location and size of the home
- Lot size
- Lot topography
- Home age and condition
- Upgrades and improvements to the home
- Home appliances
In a nutshell: An appraisal is a determination of the fair market value of your home. Many factors can influence the appraisal amount, including comparable home selling prices, home appliances, and local market conditions.
Should I get a pre-appraisal?