Property Appraisal vs. Property Valuation - What's the difference?
When putting your house on the market, you need to have a good idea of house much it’s worth to help you set the asking price and to know if an offer’s good or not. But is it best to get a property appraisal or a property valuation?
In this article, we look at the differences between an appraisal and a valuation and the different situations they are used for.
What Is A Property Appraisal?
A real estate property appraisal is an estimate of the market value of your home by a real estate agent.
An appraisal is used primarily as a guide to the approximate value of your house to help you set an asking price.
When appraising your house, real estate agents look at the current conditions in your local market and what similar houses have recently sold for to get a good idea of the price you could get.
A property appraisal looks forward in time to estimate the value of your house once it goes on the market, so an agent will look at the direction the market is heading.
When conducting an appraisal of your home, a real estate agent will think about the following things:
- House size and features
- Structure and condition
- Faults in the building
- Local council zoning
Interested in receiving appraisals from top agents in your area? Just request a quote from top agents and we’ll be in touch.
What Is A Property Valuation?
A property valuation is a more formal way to get a definitive value for your house. A valuation is done by a trained and qualified valuer, rather than a real estate agent, and is a longer and more complex process.
Property valuations usually require 2-3 business days to complete, and take in a list of considerations to come up with their final estimation.
A valuer will charge a fee, usually between $300 to $600, and deliver a detailed report on the property’s value.
When Should You Get An Appraisal Vs A Valuation?
You should get an appraisal when you are thinking about putting your home on the market and want a guide to what sort of price you could get for it. It’s a great way to compare real estate agents and what they could potentially achieve for you in sales price.
Property appraisals are a great way to get a feel for the market before selling.
Property valuations are generally only needed in specific situations where a definitive value for your house is needed.
These might include a property settlement, getting a loan approved based on your house’s value, establishing the value of a deceased estate, or as part of a court order.
How Do You Organise A Property Appraisal?
It’s usually free to organise a home appraisal, but it can be hard to find and choose the best real estate agent to conduct the appraisal.
When choosing an agent to conduct an appraisal, there’s a few things you should think about.
- How experienced are they selling houses in your location and how well do they know the area?
- How well do they understand market trends and local market conditions?
- Have they sold properties similar to your own? They should have strong experience and knowledge in these areas for you to be confident they will give you an accurate and realistic value.
You will most likely choose one of the agents who has appraised your home to help you sell it, so you should also think about how successful they will be in achieving a sale. They should be a good communicator and be able to present themselves well to potential buyers, as well as being someone you could see yourself working with for a number of weeks or months.
It can be time consuming to organise real estate appraisals yourself, and to find the best real estate agents to do them. Our free tool lets you easily choose three top real estate agents in your area to receive appraisals from. It can save you a heap of time, and there’s no cost to you.
Ready to request a free home appraisal? Just request quotes from top agents in your area and book in appraisals within 24 hours.
How Do You Get The Most Accurate Property Market Value Estimate?
Getting a property appraisal by a real estate agent is one of the best ways to get an estimate of your home’s market value – they’re free and agents are more than happy to give them – but how do you make sure an estimate is accurate?
You should get multiple appraisals done by highly experienced and knowledgeable agents based in your local area. You can compare their value estimates to give you a good idea of the price range you can expect.
Be wary of agents that quote high values in an attempt to secure the listing, and then pin the blame on you for having unrealistic expectations when the property stays unsold. Experienced agents active in their community with good sales histories are far less likely to use this underhanded tactic.
When putting your house on the market, getting accurate appraisals is one of the most important first steps. Make sure you get them done by top agents who are familiar with your area for the best and safest results.
For a shortlist of the top agents in your area and information on marketing/fees within 24 hours, just request an appraisal below.