When selling houses, professional inspections are necessary, but what about appraisals? Should you get an appraisal before selling your house in Detroit, Michigan? While home appraisals aren’t a legal requirement, the service can outline your property’s fair market value, which you can use as part of your pricing strategy.
We buy houses in Detroit at Wise Property Buyers, so we know home appraisal can influence negotiation leverage and buyer confidence, which can help solidify a good sale. Keep reading to learn why you should consider getting an appraisal for your home, even if you’re selling it for cash as-is.
How Home Appraisals Work
The purpose of a home appraisal is to ensure the property’s value at least matches its purchase price. It can help prospective buyers secure a mortgage loan approval that will pay for the house.
Home appraisers take up to three hours to physically inspect a property and any features the homeowner may have added, like energy-efficient appliances or a finished basement. They then will collect additional information about external market factors, such as comparable sales and average sale prices for similar properties, that could influence the house’s value.
Home appraisals are beneficial whether people choose a cash buyer for their houses or opt for traditional real estate sales.
Reasons to Get a Home Appraisal
Should you get an appraisal before selling your house? Here are several reasons why you should consider it.
Improved Loan-to-Value Ratio
The LTV ratio is the amount of a mortgage loan in comparison to a property’s value. Getting a home appraisal will determine your LTV. As a home seller, having this information will let you know how much equity you have in your property to use to secure additional loans from your mortgage lender.
The Home Is Part of an Inheritance
If you inherit a house but don’t live in the area or know the local market conditions, getting an appraisal for the property can determine its formal value. This can help with its sale or settling a dispute with other beneficiaries.
Negotiate Better Selling Terms
Sometimes a home appraisal can help you negotiate better terms for your sale. If the value is greater than you expected, your property could be more enticing to prospective buyers and trigger a bidding war. If that happens, the value of the house goes up.
Buyers can use appraisals to their advantage if the value is lower than expected. They could use the information to negotiate better terms. Yet, you can also use the appraisal as a seller to price the property accurately.
Contact Wise Property Buyers for a No-Obligation Cash Offer for Your House in Detroit
Should you get an appraisal before selling your house in Detroit, Michigan? At Wise Property Buyers, we say yes, and our professionals will help you every step of the way. As one of the area’s top cash home buyers, we prioritize fair offers and stress-free property sales for houses in any condition.
Let us help you avoid costly mistakes when selling your home—call (313) 513-8824 today for your no-obligation cash offer with Wise Property Buyers!