Why get a property appraisal?
Hear the words ‘property appraisal’ and chances are you think it’s only something you might ask for when you’ve reached a decision to sell your home.
That’s not necessarily the case, with an accurate and timely property appraisal giving you important insight into the value of your home on the current market and your overall net worth.
So why might you get one and what exactly is involved?
What is a property appraisal?
A property appraisal is an estimate of the price your property would fetch if it were to sell on the current market.
Conducted by a real estate agent, the appraisal takes into account an array of factors including:
- Location including nearby amenities, street appeal etc
- The property type (house, unit, duplex, vacant land)
- Property size
- Number of rooms, and any additional features such as a swimming pool, shed, granny flat etc
- Structure and condition
- Fixtures and fittings
- Current competition
- Wider market trends
As part of this process, the agent will also run a comparative market analysis, looking at similar properties that have sold in your area over the past 90 days, the price they achieved, and the number of days they spent on market.
When to get a property appraisal
As we mentioned, you don’t necessarily need to be selling your home to get an up-to-date property appraisal.
In fact, there are a number of situations where you might want to have a better understanding of the current value of your home. So let’s look at a couple of examples…
General insight
As the past few years have highlighted, Australia’s property market can move at speed.
That means your property might sell for a very different price on today’s market than it would have six or 12 months ago.
Recent renovations
Perhaps you’ve recently renovated or extended your property or are considering doing so in the near future. An appraisal is a great way of determining exactly how much extra value those improvements add to your home.
Your financial position
A property is likely to be among your greatest financial assets, and knowing what it’s worth allows you to understand your financial position more accurately.
Educated decisions
When you know a property’s worth and better understand your financial position, it allows you to make more educated decisions.
Perhaps you’re thinking of selling in the future. Maybe you’re considering adding an investment property to your portfolio, or perhaps you are pondering downsizing or upsizing.
Understanding the current worth of your property allows you to make those decisions armed with accurate information.
Who should appraise your property?
If you’re looking to have your property appraised, it’s important to opt for a local real estate agent whom you trust.
Unlike a valuation, which is undertaken by a certified valuer on behalf of a lending institution or even an insurer, a property appraisal takes into account the sale of similar properties in the area along with trends in supply and demand, and general market conditions.
That’s why the agent you turn to should have experience in your local market, along with a proven track record of selling homes similar to yours.
Importantly, they should be someone who you feel comfortable with.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
Or feel free to enter your address below to get your instant property estimate.
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
