A property appraisal is an important part of the process of buying and selling a home. Here is a quick explanation of what is involved.
If you are planning on selling your home, one of your first steps will be to invite a real estate agent over to give an appraisal. The agent will come to your house and provide a price guide of what they believe your property is worth. This is based on their local knowledge, the size of your property, its location and also the prices achieved for recent sales in your neighbourhood.
Your selling agent will also take into account the current state of the property market and any other factors such as proximity to schools and transport that they believe could influence the sale of your home. If they are a good agent, they should be able to give you an idea within five – ten thousand dollars of what your home is worth. They will also be able to explain to you what changes you can make to raise the value of your home.
It can be recommended to gather two or three property appraisals from different agents, in order to gather a few different opinions. When a real estate agent gives an appraisal, it is generally based on their (educated) opinion of the price that they believe they could achieve for your home. They will give you a property appraisal for free, in the hope that they can gain your business and successfully help you to sell your property.
It is worth noting that a property appraisal is different to a property valuation. A property valuation is carried out by an experienced valuer who is trained and holds qualifications in this field. A valuation is more formal than an appraisal and it will take into account elements including:
- Where your property is located
- The structural condition of your property
- Any faults within the building
- Features including bedrooms, bathrooms, outdoor areas and separate living areas
- Council restrictions on the property
- Aspect (north / south facing etc)
- Age of the property
- Parking and access to the property
- Proximity to local amenities
- Overall presentation and how well the property has been maintained
Your property valuer will visit you by appointment and will usually charge a fee for their services. When you receive your valuation report you will be able to use it to finance changes to your home loan, to purchase an investment property or to prove the value of your assets to your financial institution.
When it comes to selling your home, whether you receive an appraisal or an evaluation, at the end of the day the price of your home comes down to what you and your buyer and agree is the right amount.