When asking yourself ‘what’s the value of my property?’ it can be easy to think you need a valuation. Language huh – it’s a tricky thing, but actually what you want is an ‘appraisal’. If the question came from someone else, like a lawyer or a bank, then a valuation is what you would be looking for. They are both quite different and you will need them for very different reasons, so read on to find out more.
When Do You Need a Property Appraisal?
An appraisal is something you would request from a real estate agent if you were interested in what the local market was doing, or were thinking about selling your property. They are an estimate only, based on a few factors that are mostly local and specific to your property.
A property appraisal can be done by a qualified real estate agent and they will apply their knowledge of the local area and the sales activity that has happened in your neighbourhood in recent months to their estimate. They will also take into account any changes or improvements you’ve made to the property that make it more valuable as well as any new developments nearby that might also impact on the value.
An appraisal can be done at any time and is always free of charge at First National Real Estate – you just need to contact an agent and ask for one. They are not legally binding and at their heart are based in the informed opinion of that agent, so getting more than one might be useful.
When Do You Need a Property ‘Valuation’?
Sometimes the specific and accurate value of a property is needed and these instances are when a property valuation would be requested. Examples include a divorce settlement or deceased estate, or when applying for finance from a bank or lender. A valuation is a more formal task and must be done by a qualified valuer.
A qualified valuer will have completed specific studies and be registered as a professional property valuer. A formal valuation will consider a series of factors that influence the value of your property, so the valuation process can be quite complex and arduous in some cases. Things such as the physical location, structure and condition of the property are factored into the valuation, as are the overall presentation of the property and any unique additions that have been made – from the garden to the built-in wardrobes, the powder room to the pizza oven. The valuer will also assess local zoning, planning restrictions as well as parking and access.
A valuation must be arranged in advance and costs vary depending on the valuer but approximately $500 is common. Once all factors have been carefully assessed a detailed report will be provided and the valuer will explain to you how this value was achieved.
So, if you’re wondering to yourself ‘what is my home worth?’ you know the answer is just a phone call away. Contact a local agent you trust, someone you know is familiar with the area and arrange for an appraisal at your earliest convenience. It should cost you nothing but time and who knows, your property may be worth much more than you thought it was!