What’s a property appraisal in real estate?
An appraisal in real estate is an estimation of the value of your property by a real estate agent. When your agent is undertaking an appraisal, they’ll look at how much the property you’re looking to sell will likely achieve in the current market.
When you’re selling your property, you’ll want to make sure you get an accurate estimate of how much your property is worth before putting it on the market. You can do so by getting a free market appraisal from a local real estate agent. If you’re looking for a definitive value, you can pay to get a professional to come to your property and give you a property valuation. Generally, your real estate agent will base your appraisal by looking forward in time. This is because you’re likely to sell at least a month after getting your property valuation. This means, the direction of the market (e.g. if prices are going up or down) will have an effect on your agent’s estimated value.
What’s the difference between a formal property valuation and an appraisal in real estate?
There are two main differences between a formal valuation and a property appraisal in real estate:
- Real estate agents usually undertake property appraisals, whereas a qualified valuer who has been trained in the field conducts property valuations. They take all features into account, such as:
- Structure and conditions
- Building faults
- Features of the home
- Caveats or encumbrances on the property
- Local council zoning
- A property valuation is used as a guide to pricing or an estimate. However, a property valuation can be used to obtain a definitive value. Valuations can be used for the purposes of settlement, obtaining a loan for financing as well as establishing the value of a deceased estate.
Why should I get a property appraisal?
If you’re planning to sell your home or your investment property, the perfect place to start is a property appraisal. Here, you can get a feel for the local market, and discover what’s realistic in terms of pricing. A good real estate agent will know the local area like the back of their hand, and have plenty of experience in selling properties in the area.
Choosing an agent to appraise my property
You’ll want to find an agent who has the following qualities:
- Years of selling experience
- Familiar with your suburb
- Strong understanding of market trends
- Experience in selling through different methods of sale (e.g. auctions, private sale)
- Has sold properties similar to your own
If you’re looking to put your house on the market, the first place to start is booking in an appraisal to get a feel for the current market.