If you're selling your home, take a page out of other savvy home sellers' books and conduct a pre-listing property appraisal first, as this can give you a professional, objective, and accurate valuation of your house. You can then use the insights you get from the assessment to guide your pricing strategy.
An accurate appraisal is now even more crucial, seeing how high home prices have become.
More hikes will also likely occur in 2026, with an expected national increase of about 2.2%, says CNBC. Some cities may face much higher spikes, from Columbia, SC (7.2%), to Rochester, NY (10.3%), and Toledo, OH (13.1%).
With a professional real estate appraisal, however, you can set a selling price that aligns with such current market conditions and not "overprice" your property.
What Does a Property Appraisal Do?
One of the things a property appraisal does is to provide a professional, honest, and unbiased estimate of a property's fair market value. Sellers, potential home buyers, and even refinancers can therefore benefit from residential appraisal services.
A comprehensive appraisal consists of several steps, typically starting with an on-site inspection. During this step, a professional appraiser will:
- Visit your home
- Take photos and measurements
- Note any special features and improvements done on the house
- Conclude the overall condition of the property
Next, the appraiser will conduct a thorough property value assessment that involves market research and comparisons. They'll analyze local market trends and compare your house to similar and recently sold properties in the area (also called "comps").
The final step in most home appraisal services is for the appraiser to compile all their findings into a detailed, easy-to-understand report that determines the property's market value. They'll then send this to their client (e.g., you, the potential home seller who hired them).
Who Pays for a Property Appraisal?
Homebuyers are traditionally the ones who pay for property appraisals, as it's one of the typical requirements of mortgage lenders.
According to the National Association of Realtors (NAR), 74% of primary home buyers financed the purchase. Given this high rate, it's easy to see why most customers of property appraisals are those in the market for a house.
Why Do Savvy Home Sellers Conduct a Property Appraisal Before Selling?
Home buyers may be the most likely to require home appraisals, but smart homeowners also invest in them, as they know these services can help them set the right price. With the right pricing strategy, savvy sellers can avoid the many issues that can arise from overpricing.
Setting Fair and Justifiable Home Prices
Home prices in the U.S. have crept up so high that many potential homebuyers choose to delay their purchase.
A Harvard Joint Center for Housing Studies analysis published in October 2025, for instance, revealed that the national median price of single-family homes had soared five times the median household income in 2024. Because of this, many homebuyers continue to regard homeownership as out of reach.
It's for the same reason that savvy homeowners like yourself should conduct a property appraisal so you can be sure the price you ask for is fair and justifiable. If you overprice in a market that's already full of high-priced homes, you risk having buyers avoid yours.
Determining (and Realizing) the Full Potential of a Property
Residential appraisal services can help you determine the full potential of your property before selling and maximize its returns once you sell. A professional appraiser can help by:
- Identifying, valuing, and leveraging unique upgrades that can boost your home's value
- Providing insights on areas that need and can benefit from improvements before selling
- Delivering data-driven documentation to justify asking/selling prices
Avoiding Transaction Delays That Can Occur Due to Overpricing
Overpricing a home for sale can lead to what the real estate industry calls "shopworn" or "stale." The term refers to properties that have sat on the market for too long.
A listed property can become shopworn if its owner is selling it for a price that doesn't align with the property's current market value, causing prospective buyers to ignore or avoid it. The property, having failed to sell, then forces the owner to reduce its price.
The above situation already involves delayed transaction completion (i.e., the owner still hasn't sold the house). The problem is that there's a stigma surrounding the combination of a property having been on the market for an extended period and reduced prices.
Some prospective buyers may suspect the above is a result of the home having hidden issues, further reducing its marketability and attracting even fewer offers.
Frequently Asked Questions
What Happens If the Set Sale Price Doesn't Match the Appraised Value?
Suppose a homeowner doesn't conduct a pre-listing appraisal and simply lists it for a certain price. A prospective buyer, who plans to finance the purchase, then makes an offer. The buyer, as required by their lender, then has the home undergo an appraisal.
Unfortunately, the appraised value doesn't match the price set by the seller. In this case, what you have is an appraisal gap. The term refers to the difference between the property's sticker price and its appraised value.
Does an Appraisal Gap Matter to Home Sellers?
Yes, it does. If you're the seller facing an appraisal gap, you'll likely experience significant delays in the transaction, if not a complete cancellation.
One of the challenges that comes with appraisal gaps is that lenders are usually unwilling to approve a mortgage amount higher than the property's appraised price.
If your price was initially $350,000, but the professionally appraised price was only $300,000, the buyer would have to find a way to come up with the $50,000 deficit. If they can't, the deal may then fall through, forcing you to start from scratch.
Be a Savvy Home Seller and Get a Property Appraisal
A property appraisal can help you be a savvy home seller by guiding your pricing strategy with an unbiased, accurate evaluation. With a professional assessment, you can set the right (and justifiable) price, attract the right prospects, and avoid having to deal with a shopworn listing.
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This article was prepared by an independent contributor and helps us continue to deliver quality news and information.