Property Valuations vs. Appraisals – Why Banks and Agents Value Your Home Differently

You are looking to put your property on the market and you’ve had your property appraised by a real estate agent, and you’re thrilled with their selling estimate – that is until your valuation report comes back, and it’s significantly lower than what the agent quoted.

So what is your property really worth?

It’s a common issue, one that real estate agents deal with on a daily basis, as many people don’t understand that there is a difference between a valuation and appraisal.

Valuations

Formal valuations can only be conducted by a qualified valuer who has undertaken extensive education and training in this field, ensuring they take into account all of the features and issues relating to a particular property.

Valuing is a complex task and will takes some time to complete.

A formal, professional valuation undertaken by a registered valuer will take into account several relevant property features, such as:

• Location/aspect
• Building structure and condition
• Any building/structural faults
• Features of the home
• Caveats or encumbrances on the property
• Local Council zoning

Generally, you can pay up to $650 for a professional valuation. For this fee you will receive a written report detailing the value of the property, along with explanations of how and why this value was determined.

Why do I need a valuation?

Valuations are required in situations where a definitive value is needed. Reasons for this include a property settlement, obtaining finance from a lending institution, or establishing the value of a deceased estate.

Appraisals

Appraisals are intended purely as a guide, and can be carried out by real estate professional and are estimated by knowledge of the local area and recent sale prices, and they should only ever be used as an estimate of price.

It is rare for a real estate to charge a fee for appraisals and generally are only requested by potential vendors who want to get a ‘feel’ for the local market.

Why do I need an appraisal?

If you’re planning to sell your home or investment property, an appraisal from one or more qualified real estate agents can provide you with an indication of what your property is likely to fetch at sale.

Make sure you approach real estate agents who are familiar with your suburb and a real estate agent who usually works in a different area might not know the local micro-market as closely, and they may therefore give you an appraisal that is much higher or much lower than the current market can realistically support.

If you are looking for at putting your property on the market, the team at Hicks Real Estate are highly skilled, dedicated and people focused professionals.

Call us today on: 07 3355 6845 for any of your property selling questions.