Selling your home is a significant financial decision, and determining the correct asking price is vital. Whether you’re selling a home in Denver, CO, or a condo in Phoenix, AZ, a pre-listing appraisal can offer an accurate estimate of your home’s value before it goes on the market. This can help you avoid pricing errors and give you an advantage in negotiations.
But is it worth the investment? In this Redfin guide, we will explore the benefits of a pre-listing appraisal, when it is advisable to obtain one, how it compares to other valuation methods, and more, all with insights from real estate and appraisal professionals.
What is a pre-listing appraisal?
A pre-listing appraisal is a professional evaluation of your home’s value conducted before listing it for sale. It provides an unbiased assessment of your home’s worth based on factors such as location, condition, and recent comparable sales.
While buyers typically obtain an appraisal after entering into a contract, often required by their lender, a pre-listing appraisal allows you to be proactive by determining your home’s value upfront.
The team at The Blades Appraisals explains that a pre-listing appraisal “provides sellers with a clear, unbiased understanding of their home’s market value before it is listed. It helps establish a realistic asking price, reduces the risk of deals falling through during negotiations, and instills buyer confidence, especially in fluctuating markets where accurate pricing can make or break a sale.”
>> Read: What is a Home Appraisal?
8 reasons to consider a pre-listing appraisal before selling
While not mandatory for sellers, a pre-listing appraisal can offer several benefits, especially in competitive real estate markets. Here are the reasons why sellers opt for one:
1. Price it correctly from the beginning
Overpricing can deter buyers, while underpricing may result in leaving money on the table. A pre-listing appraisal provides a solid foundation for competitively pricing your home.
Onpoint Appraisals emphasizes, “Overpricing can lead to a stagnant listing, discouraging buyers and ultimately leading to price reductions. On the contrary, pricing competitively from the start attracts serious buyers, generates interest, and increases the chances of a smooth, timely sale.”
Berger Real Estate Appraisal concurs, stating that a pre-listing appraisal “offers an unbiased opinion, crucial for sellers to gain a clear understanding to help establish a realistic and competitive asking price.”
2. Expedite the sale process with less hassle
By aiding in accurate pricing and uncovering potential issues beforehand, a pre-listing appraisal can accelerate the selling process and minimize delays once under contract.
R.E. Appraisal Associates of SWFL highlights that a pre-listing appraisal “provides insight into how appraisers evaluate your home, enabling you to address any issues that might lower its value before listing. Ultimately, it streamlines the selling process by aligning expectations with market realities from the start, allowing you to sell for the highest price in the shortest duration.”
3. Negotiate from a position of strength
A pre-listing appraisal equips you with solid data to support your asking price, enabling you to respond confidently to low offers and justify your value during negotiations.
According to One Appraisal Group, “A pre-listing appraisal can act as a negotiation shield—empowering sellers with an objective valuation that bolsters their position when faced with low offers. It is especially valuable when your home possesses unique features that comparables may undervalue, such as high-end upgrades or location advantages.”
Phoenix Valuations elaborates on this concept, stating, “Imagine purchasing a car without knowing the mileage or the options on the car. That’s the analogy I use when agreeing on the price of a home before credible verification of the attributes and their market value. We advocate for this process because the home buying experience is one of the few situations where a buyer and seller agree on a price before all the unknowns are disclosed. Our stance is always: bring all the unknowns to the beginning of the negotiation process and start at a number that’s likely when considering selling.”
4. Obtain accurate square footage data
Square footage inaccuracies are common and can impact your home’s value. A pre-listing appraisal ensures precise measurements before setting your price.
The Bayou City Appraisals team explains, “Many times we see homeowners leave money on the table or a deal fall apart due to incorrect square footage. County records are often incorrect. Therefore, an appraisal not only presents your market’s current conditions but also verifies critical property information that your Realtor can utilize for their listing.”
Nabholz Appraisal adds that a pre-listing appraisal “includes an accurate measurement of the home’s square footage—something public records frequently get wrong—helping minimize potential issues during the buyer’s appraisal. Unlike an appraisal ordered by the buyer, a pre-listing appraisal provides sellers with dependable, data-driven insights that enhance their negotiating position from the outset.”
5. Identify repairs before they hinder your sale
A pre-listing appraisal can uncover issues that might diminish your home’s value or cause difficulties during the buyer’s appraisal, giving you an opportunity to address them in advance.
Velox Valuations explains, “A pre-listing appraisal report offers a comprehensive analysis of the property’s physical attributes, location, and recent comparable sales, enabling homeowners to make informed pricing decisions. Additionally, the property inspection can reveal hidden issues that could impact the property’s value, allowing sellers to address them proactively before listing.”
6. Avoid surprises during the buyer’s appraisal
If the buyer’s appraisal returns a lower value than the agreed-upon purchase price, it can pose significant obstacles. The buyer might seek to renegotiate, walk away from the deal, or face challenges in securing financing, especially if their loan approval hinges on the appraised value.
Obtaining a pre-listing appraisal helps identify potential valuation issues early on, enabling you to price your home realistically and reduce the risk of delays or deal failures later in the process.
Dawson Appraisal Services states, “Identifying potential appraisal issues early on allows you to address them proactively, ensuring a smoother, faster sale.”
7. Gain confidence and peace of mind
Edwards Appraisal Services points out that “a pre-listing appraisal is an excellent way to minimize surprises. The pre-listing appraisal can provide buyers with peace of mind throughout the process, knowing they are acting in their best interests.”
Wulf Appraisal Corp adds, “The primary reasons to obtain a pre-listing appraisal are to save time, money, and stress. If your home is priced accurately, it will sell faster, and you’ll experience less stress wondering if it will appraise for the sales contract amount. This can also save you money by preventing the house from languishing on the market for too long, necessitating additional mortgage payments. Buyers take note when a home has been for sale for an extended period, assume something is wrong with it, and often expect a discount.”
8. Be the most prepared seller on the market
A pre-listing appraisal not only aids in pricing but also positions you as an informed, confident seller from day one. By verifying your home’s value, identifying potential issues, and providing data to justify your price, it can give you a significant advantage in a competitive market.
Hamp Thomas, the Home Measurement Specialist, advises, “If you want to be a savvy seller, obtain a pre-listing appraisal. They save time, money, and frustrations throughout the home selling process. Obtain the accurate square footage that ensures you receive a fair value, review the competition, assure the buyer they won’t encounter loan complications due to an appraisal.”
Tight & Right Real Estate Valuation echoes this sentiment: “You should obtain a pre-listing appraisal if you want the upper hand. It provides you with a reality check before listing—no guesswork on price. It helps you avoid overpricing (leading to silence) or underpricing (leaving money on the table). It equips you with solid data if a buyer attempts to lowball you. And it streamlines negotiations—less back-and-forth, more confidence. Consider it your pricing power move before entering the market.”
Appraisal Nerd adds, “Pre-listing appraisal reports elevate you above your competition during listing appointments. They resolve any dispute between you and the seller regarding pricing the property, strengthen your position when negotiating contracts, and alleviate any concerns that the mortgage appraisal might come in below expectations.”
How much does a pre-listing appraisal cost?
Costs vary depending on location and property type, typically ranging from $400 to $700.
Caddell Appraisals suggests that while the initial cost may seem high, it could prove to be a worthwhile investment: “An appraisal before listing could save you more than $1,000. An appraisal is also effective in warding off low offers, which are prevalent in current market conditions.”
When does a pre-listing appraisal make sense?
The decision to obtain a pre-listing appraisal depends on your circumstances. Consider getting one if:
You’re selling in a volatile market
Bighorn Appraisals notes that a pre-listing appraisal is particularly valuable “in fluctuating markets where prices are unstable or difficult to predict. Ultimately, it provides sellers with a strategic advantage by basing pricing decisions on objective data.”
There’s a scarcity of comparable homes in your area
When your neighborhood lacks recent home sales or the properties nearby don’t align with yours in size, features, or condition, determining the right price can be challenging. This is where a pre-listing appraisal can be beneficial.
KB Appraisal adds that they are particularly crucial in areas with “limited comps or where pricing trends are changing. Knowing the appraised market value upfront helps sellers make informed pricing decisions and minimizes surprises during the buyer’s appraisal.”
The market and buyers are moving swiftly
Accent Associates explains that in fast-paced markets, sellers can benefit from the clarity provided by a pre-listing appraisal before entering the MLS.
“Pre-listing appraisals are invaluable in markets experiencing high demand or buyer interest before MLS exposure,” says Accent Associates. “I often see deals fall through due to unrealistic price expectations or buyers unfamiliar with local valuation norms. An appraisal can offer an objective pricing benchmark, align seller expectations with market realities, and highlight potential financing challenges—especially when unique property features or deed issues complicate comparability and eligibility for conventional, FHA, VA, or USDA loans.”
You’re utilizing a non-traditional selling approach
NoCo Valuations mentions that sellers often request pre-listing appraisals when “using a flat-fee listing