Should home sellers get a prelisting appraisal? An argument can be made for and against; the critical variable in the mix is the real estate agent that is selected to list and market the home. If the agent is experienced and can effectively collect and apply data, then one might not be needed. Big if. That assumes of course, that the agent is going to candidly share this information with the seller, even if it is contrary to what they think. Not all do, but that is another discussion. It’s been said many times in many places, the single most important thing a home buyer or home seller can do is learn how to select the proper real estate agent. But is an owner expected to pay $400-$500 for an appraisal along with a commission to an agent? Does the agent not have the ability to handle this aspect of the transaction? If not, what other aspects of the listing are they unable to handle?
There are several reason to get a prelisting appraisal but unless the home is something extraordinary, why can't the listing agent provide appropriate unbiased data? Agents that recommend an appraisal tend to want to avoid being the bearer of bad news; they want a third party to deliver an opinion of value different from the seller's. Agents also tell sellers that an appraisal will be an effective negotiation tool; but that's rarely the case. 
The fact is, prelisting appraisals often end up being a waste of money. Appraisals are opinions and the buyer's lender is going to order one anyway. A prelistin appraisal doesn't likely follow the same strict underwriting requirements so it may not be useful to the lender's appraiser. And in the end, what matters more; what an appraiser thinks or what a buyer thinks?
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Hank Miller is both a certified appraiser as well as associate broker. Since 1989 he’s completed and reviewed 10,000+ appraisals and sold several hundred homes, his clients do not have price, negotiation or appraisal issues. The extended members the Hank Miller Team are full time professionals and cover every aspect of every transaction; there is no substitute for experience and attention to detail.
