Ever wondered what a property appraisal is? Why online calculators to determine the value of your home don’t really work? And also, why a Real Estate Agent can’t always provide you with an appraisal on the spot. Understanding the process of how your property’s worth in the current market is determined is important.
A property appraisal is an estimation of what your home may be worth in the current market. It is a free-of-charge service provided by a real estate agent who will produce an educated opinion based on several elements and factors.
In determining a market opinion of your property, agents take into consideration the following factors:
• Recent sale prices of similar properties in the area,
• Location, aspect and outlook of the property,
• The presentation, features, age and condition of the property,
• The current state of the property market.
Most potential sellers will usually request an appraisal from a few agents before making a selection of who will ultimately sell your property. However, beware – it is recommended that you conduct your own research so you can decipher and make an educated decision about whether you agree or disagree with the agents information and marketing proposal.
How is a Property Valuation Different?
A property valuation is usually performed by a Certified Practicing Valuer who will charge a fee for the service. A valuer will inspect the property, carry out research and provide an analysis into the local market and report on issues affecting the current market value of the property. This type of service is commonly ordered by a bank or financial institution prior to approving a home loan. Valuers are not real estate agents or associated with any real estate agency. Some property owners wanting an independent opinion may also require a valuer for family settlements, capital gains tax or even building insurance.
How to Research the Market Yourself
You can do your own research to find out what your property may be worth in the current market.
- Inspect local homes that are similar to yours. The level of interest from buyers will help you to measure the current market conditions and give you an idea of how your home compares.
- Study websites like www.domain.com.au, www.realestate.com.au and the agency websites for sales in your area and specifically look for houses like yours.
What is a Seller’s Market and How Can it Affect Your Price?
A seller’s market is when buyer demand outweighs housing supply. It’s when greater competition inevitably drives property prices up favouring the seller.
What About a Buyer’s Market? How Does it Affect the Sale Price?
A buyer’s market is when market conditions favour buyers. In a buyer’s market there are usually a greater number of properties for sale and less buyers. This may come about because of rising interest rates, inflation or a slowing economy. In this type of market, sellers need to be competitive with pricing in order to achieve a sale. The consequence maybe that they just help everyone else sell their home instead!
Property owners love to discuss the market – what’s happened, what’s going to happen, how it will happen and for how long! Sellers are always debating if they should sell now or wait for something better, and buyers often think that they should hold off buying believing housing prices will drop.
Booking a property appraisal with Annette Pinkerton of One Agency Pinkerton Properties will allow you to discover current market trends and gauge where your property is positioned. To get your free property appraisal simply call Annette on 0418447856 or click here.