Posted on 28/05/2016 by Todd Pearce
What would you do if you wanted to find out what your property is worth in today’s market? Would you ask for an appraisal or do you get a valuation?
They may sound the same but they’re not.
Do you know the difference between an appraisal and a valuation?
A valuation can only be conducted by a certified valuer, one who has completed the prescribed educational course and is qualified to perform the task of valuing property.
An appraisal on the other hand is simply an estimate of a property’s market value, which is what you’ll generally get when you ask a real estate agent to price your home.
Appraisals by real estate agents are just that. It’s their estimate of the
property’s value in the current market. The price the agent quotes you is
simply their opinion of the market price of your home and since it’s not
legally binding it doesn’t have to withstand the scrutiny of being accurate.
This explains why homeowners are often
quoted different prices when they call agents in for an appraisal. Vendors are then faced with the dilemma of not knowing which agent’s price estimate to believe. Real Estate agents should have a good knowledge of the sales in their local area and should be in a position of accurately estimating the likely selling price by making
comparisons with comparable recent sales.
So why do agents often differ in their price estimate?
In their attempt to please the vendor and in order to increase their chance of
winning the listing, agents can often be overoptimistic with their price
estimate. Engaging a qualified valuer for a valuation on the other hand will
cost you money but it could be a worthwhile investment as it gives you an
independent, unbiased and
accurate valuation that you can legally rely upon. A written independent valuation can be a valuable tool when negotiating with a buyer who may be trying to buy the property at a lower price, particularly in the current market. A valuation can also provide you with peace of mind. Having an independent valuation makes your job of selling your home a little easier, as you are able to compare any offers you receive with the written valuation.
FREE Market Appraisals
Page & Pearce offer FREE Market appraisals to all prospective sellers and homeowners.
The Sales Team at Page & Pearce accompany these market appraisals with a CMA comparable sales analysis, which is a report that shows actual sales evidence of properties that have sold in today’s market. This evidence is also used by registered valuers to help in giving the home owners an indication of what has sold and the sales prices achieved. In fact a lot of the time the valuers and real estate agents share their knowledge in achieving accurate data for their clients.
If you are interested in finding out an opinion on your property call the Sales Team on 07 4779 6989.