The Importance of Pricing Your Home Correctly

Posted on: March 23, 2007

Pricing a home correctly can lead to a timely, smooth, successful transaction. Poor pricing can lead to months of frustration and lost revenue. It is well known that the longer a house sits on the market, the lower the price will be overall and the more likely it is that sellers will have to make additional concessions to close the deal. With the introduction of the Internet, many sellers rely upon computer estimations of value. These have been proven to be wildly inaccurate in many instances. Worse yet, they provide no guidance as to cost-effective improvements that can enhance sellers’ equity positions.

This is why you should know the difference between appraisal and home inspection.

Many people wonder about the difference between a property appraisal and an inspection, and how each is used during the home buying process.

An appraisal is a formal assessment of the value of a home or property. When you are seeking financing, the lender usually requires an appraisal to ascertain the value of the property in order to make sure the loan amount does not exceed the value of the property being sold. Appraisers are assigned by the bank.

An inspection is an assessment of the systems and structural integrity of the property. It’s normally ordered and paid for by the buyer at the time of inspection to find any hidden problems with the property. An inspection is often written into the Purchase and Sale Agreement as a condition of the sale. It is wise to contact more than one inspector and ask for references. Finding a reputable inspector is key to a thorough home inspection.

Written by Don McCredie, Principal Broker portlandrealestate.com
dba EXIT Acclaim Realty