Q: Can I list my home without having an appraisal done first? The buyer will need an appraisal correct? What if thier appraisal comes in lower than my asking price
A: Ok, so you have 3 questions – then, I have 3 answers. 1) Yes, you can list your place without an appraisal. 2) the buyer will need an appraisal for most new mortgages, if they buy cash or land contract, then no – it is not needed. 3) If their appraisal comes in low, then you will have some options. Like reduce the price, have them come up with more money (not realistic) or, cancel the deal altogether (but then, you would still have the appraisal problem & no buyer).I suggest being realistic on your listing price (listen to your agent!), otherwise, YOU might end up being the highest bidder (& then you keep the house) – is that what you want?
Remember, for a mortgage to go through – it HAS TO APPRAISE for value! Otherwise, NO DEAL! Your opinion of value has NO BEARING on what the market dictates. Be smart like the wise business person you are.
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