As you start thinking about selling your home, you’ll want to find out what your property is worth. A good way to go about this is to obtain an official property appraisal. This is a professional estimate of your property’s value, which can be arranged through an independent certified valuer or your real estate agent in most cases. Bear in mind that there are differences in the services you will receive from these two sources, both in the level of detail and the ultimate purpose of the appraisal.
In many cases, an accredited valuation will be required as part of the loan approval process by a bank. A real estate appraisal will be used as a guide to pricing the property, by contrast. Before you proceed, you can find a qualified real estate agent in your area who can give you an appraisal which can give you a good indication of the value of your home. Compare agent qualifications at LocalAgentFinder to find a local expert.
It’s also helpful to compare the differences and similarities between real estate appraisals and accredited valuation.
Real Estate Appraisals
If you need an estimate of your home’s value, a real estate appraisal will help you. This is usually offered by a real estate agent as a free service, because it helps the agent establish a relationship with you and gain your business. Because these are oftentimes provided for free and by a non-accredited appraiser, it’s important to take this information with a grain of salt. A real estate agent can certainly provide you with an accurate number of your home’s value, but their role will be different to that of an accredited valuer.
Before you get started with the appraisal, you’ll want to interview the agent to ensure that they are specialists in your neighbourhood. Ask how many sales your property can be compared to, and over what specific time period. This is important because market prices can change drastically over time, so you need to compare your home to sales that have occurred in the past 3 to 6 months.
A good real estate agent will also look at the number of sold properties in your area and the general inventory. They should have viewed many of these homes if they specialise in your neighbourhood, and will know how your home measures up. Other factors that may weigh into the home’s value could include your property’s curb appeal, access to local amenities, decorations, and move-in readiness.
In the end, an appraisal is subjective because no two properties will be completely alike. It’s in your best interest to consult with two or three different real estate agents before you commit to anything. You can also compare agent qualifications using the no-obligation online dashboard at LocalAgentFinder to get a better fit.
The listing price that you choose for your property will not necessarily indicate its true worth. You should work with your agent to consider all the different elements that factor into the buyer’s eventual decision to purchase your property. Remember to consider buyer motivations and market conditions in order to reach an agreeable sale price, which is the final indicator of your home’s value.
Another way to look at what your home is worth is to obtain an independent appraisal. These are often required by banks or lenders as a condition of a mortgage loan. They can also be requested by buyers before they will commit to a purchase. Accredited valuers can value the property for sale, but they also often use their valuations in situations such as insurance claims, valuing taxes, legal settlements, or assessing mortgages.
The valuer will take many factors into consideration when working out the value of your property, including condition, location, size, and caveats or encumbrances. Unlike the real estate appraisal, they do not take factors such as style or curb appeal into account. They also don’t compare your home against the inventory of similar properties on the market.
Valuers don’t take buyer motivation into account. For instance, if you have a park located at the end of your street, a valuer would not factor this amenity into their appraisal. However, a real estate agent would definitely consider this a positive attribute that could raise your property’s value, as would a potential buyer. There are many different reasons why a person would potentially pay more or less than the appraised value as a result.
Online Property Appraisals
A quick search online reveals numerous services that provide sellers with a free property appraisal. However, it’s best to approach these with a bit of caution. Although they may be enticing due to the lack of effort required to obtain an appraisal, they often yield more generic results. An online appraiser is unlikely to view or walk through your home, and the results are based only on generic information that you provide. You won’t gain the added insight and expertise that an accredited valuer or real estate agent could provide.
An online appraisal can be a good first step in your sales process, but you will want to take more specific factors into account to price your property accurately. With more data available, the more accurate your reading of it will be and the more likely you will be to figure out a realistic sale price.
It’s important to have an experienced real estate agent on your side to assist through the selling process. Compare agents in your local are at LocalAgentFinder to find an agent that suits you.
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