Few Sellers Need to Get Professional Appraisals

Question: Because the market for homes in our neighborhood is excellent, my wife and I are thinking about selling our home, probably in January or February. Should we hire an appraiser? Or is the estimated market value from a Realtor sufficient?

Answer: You probably don’t need to hire a professional appraiser unless your home is unusual or in an area where there haven’t been many recent home sales. However, you should interview at least three successful real estate agents who sell homes in your vicinity. The reason to interview three (or more) agents is to cross-check their evaluations of your home’s market value.

If you interview only one agent, he or she might “low ball” your home’s market value. That means the agent will estimate a low valuation, hoping for a quick, easy sale.

When you interview three or more agents, watch out for an agent who “high balls” your home’s value, hoping you will list with him or her because of the high sales price.

Each agent interviewed should give you a written comparative market analysis. Use that terminology to show the agents you know what you’re doing.

The analysis documents each agent’s opinion of your home’s market value, based on recent sales prices of comparable nearby homes. It also shows the listing prices of similar neighborhood homes for sale and the asking prices of recently expired comparable home listings.

Letters and comments to Robert J. Bruss, a San Francisco-area lawyer, author and real estate broker, may be sent to P.O. Box 280038, San Francisco, CA 94128. Bruss suggests consulting an attorney or tax advisor before making important real estate decisions.