How Often Should You Have a House Appraised Before You Sell?

Home appraisals provide an estimate of value prior to selling.

Appraisals Have a Time Limit

Home appraisals will cost a seller $300 or more, depending on the size of the property to be appraised. Additionally, appraisals are valid for only 60 to 90 days, at which point a new appraisal would need to be ordered. The goal of an appraisal is to determine a sale price for a home, based on comparable sales in the neighborhood.

Buyers Will Have to Order an Appraisal

Regardless of an appraisal ordered by a home seller, the buyer's lender will require a new appraisal to validate market pricing and the value of the home when underwriting the mortgage. In many cases, even if a seller has an appraisal completed, it will be overridden by the appraisal value from the lender-ordered appraisal.

Bottom Line

In many cases, a home appraisal before selling isn't necessary. Real estate agents will perform a comparative-market analysis, which is a less in-depth version of an appraisal, at no cost. The CMA can provide a seller with a suggested sales price for the property, so there will be no additional cost for an appraisal.

References

• Mortgage Loan Place: FHA Loan Experts
• The Wall Street Journal: Five Tips for Getting Your Home Appraised Before Selling
• Mortgage Q&A: How Much Does a Real Estate Appraisal Cost?