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  Dear
Steve,
A widow I know is considering selling her large, well-kept, 60-year-old
home in the Midwest. Her family only has a vague idea of its market
value. My question is, if the homeowner can afford it, what are
the advantages and disadvantages of getting her own appraisal from
a licensed appraiser? Is there an advantage to getting this done
before talking with a real estate agent about listing the property?
-- Val U.
 Dear
Val,
If the widow's home hasn't been appraised in many years, which sounds
like the case here, a professional appraisal will help get the family
up to speed on its current estimated market value and help them realistically
price the home. Appraisal can serve to deflate an inflated opinion
by the family and right-size an underestimation. As an objective,
tangible estimate, an appraisal could also prove invaluable during
negotiations.
A good appraiser can also point out needed repairs
and deficiencies and offer a few low-cost tips on increasing curb
appeal. Just make sure someone asks the appraiser to make note of
these before the appraisal is performed.
As for getting an appraisal before talking with a
seller's agent, it probably won't advance the sales strategy much,
if at all. Most good agents will be able to arrive at a pretty reasonable
value of your home based on a walk-through and by examining comparable
neighborhood home sales and other market data. For commission's
sake, an agent will try to extract the most value out of the place
anyway -- unless you're paying the agent a flat fee, which is inadvisable.
If nothing else, that appraisal-in-hand will give
the agent another weapon to guard against low-ball offers after
the agent gets your listing. Note that the agent may want to list
the home at a little above the appraised value to give the seller
some higher-end wiggle room.
However, if the widow plans to share the buyer's agent,
which is usually not a good idea, the appraisal would at least serve
as a legitimate value estimate. (Advise the widow against this arrangement,
please. She needs her own agent.)
Of course, your buyer's lender will no doubt require
the borrower to pay for a separate appraisal to make sure they are
not loaning the buyer more money than the property is actually worth.
So you may see two slightly divergent appraisal numbers. In other
words, don't be surprised if the buyer's appraisal is a little lower.
Other tips and caveats: The family should ask the
appraiser what kind of professional appraisal organization he or
she belongs to. Some good appraisers aren't members of any, but
such affiliations usually illustrate a commitment to the profession.
Note also that appraisals are often considered outdated after six
months or so, so plan accordingly.
Lastly, realize the value of anything is only what
people are willing to pay for it, and that could be several thousand
above or below the appraisal value.
Good luck.
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