Listing with a realtor will not make any difference at all in what your house appraises for, just what it sells for. When pricing your house, just realize that the sales price you see for a house you are comparing your's with probably included a commission and the seller netted less. Since most houses are sold by realtors, appraisers assume that a house was sold by a realtor and do take that in consideration. I get many calls from appraisers concerning houses I have sold and am frequently asked why particular houses sold for less or more than others in the area that they are trying to compare. Often incentives, (such as closing costs or decorating allowances) are given to the buyer which also affect price.There are also many "short sales" and lender owned properties on the market. If those are the rule, rather than the exception, appraisers will also include those properties. Lenders also do pay commissions to realtors for selling their REO's.

John,
In your first response below, you wrote:
4. Appraisals take into consideration normal real estate commission fees (usually 6%)...

Is this statement accurate? How does this work? For example, if I refinanced my house and is was appraised at 200K, and then a week later decided to sell it with a Realtor, would that same appraiser come back with a value of 224K? That doesn't seem right. Or is the 200K value only accurate if listed with a Realtor, but 176K if I was to sell it myself? Either way, I don't see how listing a house with a Realtor would affect the appraisal at all.

Brad,
Congratulations on getting your home closed. I'm glad it appraised. I always recommend a buyer having a agent to represent him/her. While most buyers are able to find a house they like, it just makes life so much easier if you have someone to negotiate on your behalf and get the property to closing. Realtors can also help you find competitive lending options and insurers. I usually sell a house twice, once in negotiating price & terms for my buyer (or seller), and the second negotiating repairs after a home inspection has been done. Make sure you insist on a home warranty. In my opinion, American Home Shield (AHS) is the best. You want the "Service Plus" option which covers the HVAC and other items even if they have not been properly maintained and serviced. Most warranties do not cover the HVAC for rust, corrosion, and lack of maintainance. AHS just replaced A/C for one of my clients who purchased in Sept. With the new 13 seer requirements, if an air conditioner uses the old type freon, and parts are not available, they completely replace it (including ductwork if it does not satisfy the requirements of the new unit).

Hey Brad,
Appraisals try to use the last 3 comparable sales in the neighborhood where the home is located. Recently, within the last 6-7 months, there has been a mandate that if the loan is backed by Fannie Mae or Freddie Mac (or FHA) that banks cannot choose their own appraiser. So you really cannot affect the appraisals. Because of the current market, most appraisals come in below what sellers think the property is worth. Appraisers may come from anywhere in your State and may not even know the neighborhood. Lenders are trying to get this changed. On the subject of selling, if you do need a good realtor, I can recommend and excellent one in your area. We are part of Leading Real Estate Companies of the World and have referral network (Internationally) that I feel is second to none. Let me know if I can help you. Regards

Thank you for your answer, John! The house appraised high enough and everything went through well and closed. I noticed that not one local realtor answered this question, as I was hoping to find an agent for buying. I do appreciate you time, John, as no one here is ambitious enough to recognize a potential buyer when they see one.
Have a wonderful day.

Good Afternoon Brad,

1. Banks do not do appraise real property and, with new banking reforms & regulations, banks can no longer choose the appraiser.
2. Your perceived value is not relative to the actual market value (or appraised value) of your home. Appraisers use 3 recent sales (comps) in a neighborhood to determine appraisal value. They add/subtract various features (ie. a detached garage or extra bath), to make the homes as physically equal as possible. If they cannot find recent sales in your neighborhood, they will look in similar closeby neighborhoods.
3. Sales of lender owned and/or, short-sale properties in a neighborhood do affect the appraised value of a home in that neighborhood if there are several and they are the only ones selling in the neighborhood. If there are only one or two, and there are lots of sales they will probably discount those lender owned foreclosed properties.
4. Appraisals take into consideration normal real estate commission fees (usually 6%), so your house should probably be priced 6% below comps.
5. Most individual sellers have no idea of what their home will or should sell for. The market is changing EVERY DAY. One sale in your neighborhood can make a difference.

Finally, I feel every seller should be represented by a Realtor. FSBO properties average selling for 17% less than those that are listed with a Realtor. It is difficult for a seller to negotiate directly with a buyer because of emotional factors. I don't know of many Realtors who charge more than 6%. Many things come into play in a sale. Realtors facilitate and coordinate these activities. Lenders require a clear CL-100 (termite & wood rot & wood destroying organisms) letter at closing. Many states require a "Sellers Condition Disclosure" to be given to the buyer before they sign a contract. Earnest money is required by law to be placed in an escrow account. The Realtor handles this. Is the earnest money enough to discourage a buyer from backing out because of "buyer remorse"? Certain seller protections should be included in the contract. What happens if the buyer walks away at the last minute by choice, or does not get approved for a mortgage? Is the buyer pre-approved or just pre-qualified. There is a difference. What happens if the buyer inspects the property and opts out? Is the buyer fully aware of all closing costs involved with the purchase? Which costs should you pay and what costs should the buyer pay? If I were a buyer buying a FSBO property, I would seek out a good Realtor. Not being represented is like going to court with no lawyer. Probably more than you wanted to hear.

With kind regards,

John