Do You Really Need an Appraisal Before Selling Your Home?

If you’ve ever sold a home, you’ve probably heard the term appraisal tossed around—especially in real estate deals where people say it can make or break a sale. But is it actually necessary to get your home appraised before you list it?

At first glance, it might seem like a smart move:“If I get a professional to appraise my home’s value ahead of time and list at the right price, I’ll attract serious buyers, right?”But in reality, a pre-listing appraisal doesn’t always benefit the seller—and in many cases, it can even work against you.

Here’s what every seller should know before paying for a pre-listing appraisal.

What Is an Appraisal, and When Does It Happen?

An appraisal is a formal evaluation done by a licensed appraiser who assigns a dollar value to a property.Typically, this step comes after an offer is accepted—because it’s usually ordered by the buyer’s lender during the mortgage process.Why? Because the lender wants to make sure the home is actually worth the amount they're lending.

So in most cases, the appraisal happens well into the transaction—not before a home hits the market.

Why a Pre-Listing Appraisal May Be Inefficient

Pre-listing appraisals usually cost between $300–$500 (and more for large or complex properties). But here’s the catch: the buyer’s lender likely won’t accept it.

Most banks require appraisals to be done by someone within their own approved network.That means the appraisal you paid for may not count for anything once the buyer steps in.

On top of that, experienced real estate agents offer a Comparable Market Analysis (CMA) for free. This gives you a solid, data-driven estimate of what your home could sell for based on similar homes in your area.

Appraised Value vs. Market Value: Which One Matters?

Appraised value and market value are not the same thing.

• Market value reflects what buyers are actually willing to pay—often influenced by emotion, urgency, and competition.

• Appraised value is a more conservative figure based on size, structure, and past sales—following strict formulas.

In competitive markets, it’s common for homes to receive offers above the appraised value.If you rely on an early appraisal to set your price, you might actually price your home too low.

How Do You Price a Home Without an Appraisal?

A skilled agent will evaluate recent sales ("comps") of similar homes in your neighborhood, factoring in location, condition, square footage, upgrades, and current market trends.They’ll also consider your personal timeline and goals to recommend a strategic listing price—all without needing an appraiser.

And best of all, it costs you nothing.

A Pre-Appraisal Could Work Against You

The biggest risk? If the appraised value comes in lower than market value, you might feel pressured to list lower than you should.You could end up leaving money on the table.

Plus, appraisals on large properties or those with land tend to be more complicated—and more expensive.

Bottom Line: Let the Buyer Handle the Appraisal

While there may be rare exceptions, in most standard home sales, a pre-listing appraisal is unnecessary and potentially wasteful.Instead, your best move is to work with a knowledgeable agent who understands the local market and can craft a pricing strategy tailored to your goals.