Can I Get an Appraisal Before I Make an Offer?

Homebuyers often seek ways to make informed decisions in the competitive real estate market. A common query involves obtaining a professional property appraisal before formally submitting an offer on a home. Understanding this approach can provide buyers with data-driven insights, influencing their offer strategy and confidence in a prospective purchase.

Understanding Pre-Offer Appraisals

A home appraisal provides an independent, professional estimate of a property’s market value. Typically, an appraisal is a standard requirement in a real estate transaction, primarily ordered by a lender once a purchase agreement is in place to ensure the property’s value supports the loan amount. While it is possible for a buyer to commission an appraisal before making an offer, this practice is not common. This uncommonality stems from associated costs, time commitment, and the necessity of seller cooperation to grant access for the appraiser.

Key Considerations Before Ordering

Before deciding to pursue a pre-offer appraisal, a buyer must carefully weigh several practical considerations. The buyer will be responsible for the entire cost of the appraisal, which typically ranges from $400 to $700, and this fee is non-refundable regardless of whether an offer is made or accepted. Additionally, appraisals require time to schedule, conduct, and for the report to be prepared, often taking a few business days to over a week, which can be a significant hurdle in a fast-paced market with tight offer deadlines. A crucial and often challenging aspect involves securing the seller’s explicit permission and cooperation to allow an appraiser access to the property. Without this access, a pre-offer appraisal cannot proceed, and many sellers may be reluctant to grant it before a firm offer is in hand.

It is important to remember that a pre-offer appraisal serves as an informational tool for the buyer and does not replace the subsequent appraisal required by a lender for financing purposes. The lender will order their own appraisal once a purchase agreement is executed, and their valuation may differ from the buyer’s pre-offer report. In highly competitive markets, the time and effort invested in obtaining a pre-offer appraisal might be impractical, as properties often receive multiple offers rapidly, potentially before an appraisal could even be completed.

The Pre-Offer Appraisal Process

Should a buyer decide to move forward with a pre-offer appraisal, the first step involves locating a qualified and independent appraiser. Buyers can find reputable appraisers through professional organizations or by seeking referrals from trusted real estate professionals. Once an appraiser is selected, the buyer formally engages them, providing property details and clearly stating that the appraisal is for the buyer’s informational purposes prior to making an offer.

A critical procedural step is arranging property access for the appraiser, which requires direct coordination with the seller’s real estate agent or the seller themselves. This access is entirely dependent on the seller’s approval, as the appraiser needs to physically inspect the interior and exterior of the home. During the appraisal visit, the appraiser will thoroughly examine the property, measure its dimensions, note its features, and assess its condition. Following the visit, the appraiser will compile a detailed report outlining their valuation methodology and the estimated market value of the property, which is then provided to the buyer.

Leveraging Appraisal Findings in Your Offer

Receiving a pre-offer appraisal report can provide a buyer with valuable information to inform their offer strategy. The appraisal’s valuation can help solidify or adjust the buyer’s proposed offer price, providing data-driven confidence in the amount they are willing to pay. While a pre-offer appraisal is not typically a formal negotiation tool, it can be used as a supporting document to justify an offer. However, its power in negotiations is limited due to its non-binding nature for lenders and potential disregard by sellers.

The appraisal report can significantly influence the buyer’s ultimate decision to proceed with an offer, especially if the appraised value comes in significantly lower than anticipated. This insight can prevent a buyer from overpaying for a property. Having a pre-offer appraisal can also help set the buyer’s expectations for the lender’s appraisal that will occur later in the purchase process, providing a preliminary understanding of the property’s likely financed value.