What is a property appraisal?

Ever wondered what a property appraisal is? Why you can't just use an online calculator to determine the value of your home? And also, why a Property Agent can't actually give you an appraisal right there on the spot when you ask. Understanding how your property's worth in the current market is determined is important.

Learn more in this video, where Joanne Danckwardt provides insights for property appraisals and why it is important your agent provide you with one.

If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist.

YES, DOWNLOAD MY CHECKLIST

 A property appraisal is an estimation of what your home may be worth in the current market. It is generally provided free of charge by a real estate agent. The agent will provide an educated opinion based on recent, comparable sales in your area, current market sentiment plus the agent’s understanding of the features your home offers, that may create buyer interest and competition or alternatively, negative features which may limit interest and the price buyers will be prepared to pay. It will allow you to price your home to sell.

It can be sensible to request an appraisal from a number of agents before you select the agent you would like to use to sell your property. However, it is also important to do your own research so you can either agree or disagree with the agent, as well as understand the basis behind their pricing plan, ensuring that your price your home to sell. Having a list of questions to ask your real estate agent prior to the appraisal is an ideal way to ensure you receive all the relevant information.

How is a Property Valuation Different?

A property valuation is usually performed by a Certified Practicing Valuer for a fee. They are not real estate agents or associated with any real estate agency. A valuer will inspect the property, carry out research and provide an analysis into the local market, with a detailed report regarding issues affecting the current market value of the property. A property valuation service is commonly required by a bank or financial institution prior to approving a home loan. It is also used by buyers and sellers wanting an independent opinion, family or partnership settlement, capital gains tax and in some instances building insurance.

How to research the market yourself

There are ways you can do your own research to find out what your property may be worth in the current market.

• Check times and dates of local open homes and up-coming auctions of homes that are comparable to yours, and have a look. The interest in these will help you to gauge the current market conditions and allow you to compare your home against the market.
• Websites like www.domain.com.au, www.realestate.com.au and agent sites like www.joanned.com.au are a good place to see what has sold in your area for houses that are comparable to yours. These sites also provide observations and articles about current market conditions.

 What is a Seller’s Market and How Can it Affect Your Price?

A seller’s market signals strong consumer confidence and a solid economy. It happens when buyer demand outweighs housing supply and greater competition will inevitably drive property prices up.

With competitive bidding, a seller’s market will see increased auction and sales success. Be aware that the property market can be very segmented. Properties at the lower end generally always attract strong buyer interest, while properties at the high end may struggle for attention. Regardless of the market conditions, it pays to have an agent with outstanding negotiation skills to ensure you receive the best price for your property.

What Impact Does a Buyer’s Market Have on the Sale Price?

A buyer’s market is referred to when market conditions favour buyers. In a buyer’s market there are usually a large number of properties for sale and less buyers. This may come about because of rising interest rates or a slowing economy. In this type of market, sellers need to be competitive with pricing in order to achieve a sale.

People love to predict the real estate market– where it’s going, how low it is going to go, or how high it will rise. Sellers want to know if they should get on the market right now to make the most out of the boom before it turns, and buyers want to know if they should hold off on buying for another six months to see if housing prices will drop.

Booking a property appraisal with Joanne Danckwardt of One Agency JD Property Agents will allow you to find out the characteristics of the current market and how your property sits. To get your free property appraisal simply click here.

If you're ready to discover the secrets to being ready to sell your home, download our free insider secrets to being ready to sell checklist.

YES, DOWNLOAD MY CHECKLIST

If you feel you could benefit from our experience with buying and selling, we’d love to hear from you. Simply reach out.  We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771. We look forward to talking to you soon.