Selling your home FSBO with an appraisal from The Chicagoland Appraiser Group gives you more of the tools you need to market your home.
Selling homes “For Sale By Owner” (FSBO) has been gaining traction for several years now. With social media, and listing sites like Zillow and ForSaleByOwner.com, it has become easier to market your own home. Without the guidance of a Broker, there are many avoidable mistakes that could be made. One of the most important of these is pricing your home correctly. Price the home too low and sure it will sell fast, but you could leave thousands on the table. Price the home too high and it will languish on the market, overlooked. Or worse yet, you sell it for the higher price only for the deal to fall through when it doesn’t appraise out for the bank! The answer to this problem is to have your home professionally valued by an experienced appraiser. Many appraisers (myself included) offer additional benefits beyond the appraisal including a professional floorplan and drone footage of the house that could be instrumental in marketing your home. The cost of the appraisal will be minimal compared to the benefits, including:
ACCURATE PRICING
Determining the optimal selling price for a home can be a complex task. If the price is set excessively high, the property may remain unsold for an extended period, leading to doubts about its worth among prospective buyers. Conversely, a price that's too low could result in a financial loss. Obtaining a professional appraisal can offer an impartial assessment of your home's market value, equipping you with the necessary information to establish a fair and marketable listing price.
CREDIBILITY AND TRUST
An official appraisal adds credibility to your asking price and can serve as a powerful negotiating tool. Buyers are more likely to trust the price you've set if you can back it up with an appraisal from a certified professional. This trust can expedite the sale process and may even result in a higher final sale price.
FINANCING HURDLES
Most buyers will need to secure a mortgage to purchase your home, and lenders will require an appraisal to determine the loan amount they're willing to offer. If the lender's appraisal comes in lower than the agreed-upon sale price, it could jeopardize the sale. Having a pre-appraisal in hand can help you avoid such pitfalls and may even expedite the mortgage approval process for the buyer, as it provides a reliable estimate of the home's value.
AVOIDING POST-LISTING PRICE ADJUSTMENTS
Nothing can derail the momentum of a home sale faster than having to adjust the price after it's already been listed. This often happens when sellers overestimate the value of their home. A professional appraisal can help you avoid this mistake, ensuring that you get the most for your property without the need for disruptive, last-minute price changes.
PEACE OF MIND
Finally, an appraisal offers peace of mind. Selling a home is a significant financial transaction, and the more information you have, the better decisions you can make. An appraisal provides a detailed analysis of your property's value, accounting for its condition, location, and comparable sales in the area.
so what do i get with an appraisal?
A real estate appraisal is more than just a professional opinion of your property’s current market value. Many things are taken into consideration when appraising a home including: the location, market condition, recent sales and the condition of the property. All of these items are accounted for and included in the appraisal report. The appraisal report is a (usually) 15 - 25 page report filled with the data used to support that opinion of value. Whether market values are currently moving up or down is reflected in that value as well as recent updating (or lack of..) that have been completed on the property. In the appraisal report you will have a local market analysis (how many similar homes have sold or are active on the market), what is the median value and how that relates to your property, how long the average home takes to sell and how many properties are distressed (foreclosure/short sale). The appraisal report will also have a sales grid which include the “comparable” properties (recent sales) the appraiser used to determine your value. If you order a FSBO appraisal you will also get a detailed and marketing ready floorplan of your property as well as several “post ready” drone photos and videos of your house exterior.
Detailed floorplan of every floor of your house including room dimensions and fixed furniture.
Drone photos of the exterior of your house including: front, sides and backyard/back of house.
Drone videos including: neighborhood view, circle around and looking away.
What is the process?
Once the appraisal is ordered and an inspection time is set, its time to get ready for the appraiser. You do not need a deep clean for the inspection; however, any clutter should be cleaned up to the appraiser has easy access to all parts of the house. The inspection times typically take between a half hour and an hour. FSBO Appraisals will take closer to an hour due to the extra time necessary for scanning the house for the floorplan and drone footage. The appraisal will start on the outside taking photos and exterior measurements (the measurements for the appraisal are different than for the floorplan). Taking exterior measurements are very important as public sources could have the square footage of your house wrong (many times they do!). On the interior of the house the appraiser will go into every room and take notes on the condition of the components, materials used and updating. Pictures are preferably taken of each room too (the photos as well as the entire report is private and only accessible by the client (you) and the appraiser) - a picture is worth a thousand words. From there the appraiser will ask about the timeline for updates done (i.e.. roof, flooring, kitchen update…) and anything else that is not readily visible during an inspection. The last step is scanning the house for the floorplan, this will start in the basement and move up to the top floor. Make sure that all doors (including closest) are open so that the scan can include them. Once the inspection part of appraisal process is complete, the appraiser goes back to the office and crunches the numbers, the completed appraisal report will usually be emailed within two business days.
How much does it cost?
Every appraiser has their own fees, but for The Chicagoland Appraiser Group, a For Sale By Owner Listing Appraisal starts at $450 for a standard home - this includes the appraisal report with value and market analysis, the floorplans of your house and drone footage/videos. This is a significant value as the sketch and drone footage alone can cost a significant portion of that price! If your property is larger, has a unique design/feature, or is located on a larger lot - the cost of the appraisal will go up.
In conclusion
I have been appraising for over 15 years and The Chicagoland Appraiser Group is located in downtown St. Charles (a Western suburb of Chicago). I have experience on all types of properties throughout the Chicagoland area, I have seen it all! I would love the opportunity to complete a FSBO Appraisal for you and make the process a little easier! Please feel free to call for any guidance I can give (630-448-0244) or click the link below, fill out the form and we will reach out to you. Good luck selling your home!
