One of the most important steps in the home sale process is the appraisal. Once a buyer makes an offer on your property and you accept the terms and conditions, the buyer's lender will want to have the property appraised.

The reason? The lender wants to make sure the property is really worth the amount the buyer is willing to pay. Remember, if the buyer is unable to meet his obligation and defaults on the loan, the bank becomes the owner. They do not want a property that is more valuable on paper than it is in the marketplace.

Professional appraisers determine the value of a property by examining homes that have sold in the area during the last six months as well as the home's physical condition. If the appraised value comes in higher than the sale price of the home, the sale will likely proceed to the next step. However, if the home is appraised for less, there could be problems. The lender may require the buyer to put more money down, funds they may or may not have. Or the lender may refuse to fund the loan at all.

For this reason, some sellers opt to hire their own appraiser before they set their asking price. This prevents them from over-pricing the property and adds a level of comfort during the sale process. Discuss the merits of a pre-sale appraisal with your selling agent. Although the cost of the appraisal may be a deterrent at first, it could ultimately aid in the sale of your property.