In real estate related financial transactions, when are appraisals typically ordered?

When listing a property, appraisals are typically ordered to determine the market value of the home before it is officially put on the market. This valuation helps sellers set a competitive listing price that reflects the current market conditions and attracts potential buyers. By having an appraisal done at this stage, the seller can make informed decisions about pricing and understand how their property compares to similar homes in the area. This practice is vital, as overpricing can lead to extended time on the market and underpricing can result in lost potential profit.

While appraisals can occur at various points in a transaction, ordering one when listing a property is particularly strategic in ensuring that the listing is both competitive and justified in the eyes of potential buyers and their agents. Other options, such as ordering appraisals during buyer consultations or at closing, may occur but are generally less common as part of the initial listing process.