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How to find out what your property is worth?

If you are thinking about selling your property, you will have grappled with the question of value. How much will my property sell for? There are lots of ways to get an idea of property value, usually falling into one of the following categories:

  1. Online valuation tools
  2. Valuation services
  3. Real Estate Agent appraisals

Each of these methods of valuation has its pros and cons, and each is right for different people and different situations. Sometimes a combination of approaches is best.

Online valuation tools:
How does it work?

You will input some information about your property, usually address, number of bedrooms, number of bathrooms, and possibly condition of your property. You will then be given a computer-generated valuation of your property based on recent sales of properties in your suburb.

Pros:

  • Quick (often instant) downloads of recent sales information
  • Free or inexpensive to have done

Cons:

  • Lacks the individual/personalised touch – will not consider specific differences between your property and the comparable properties in the report
  • No sense of how buyers are behaving in the market or the amount of competition between buyers for properties like yours
  •  
    • Valuers are completely independent, and are not incentivised to give you a high valuation, just to tempt you to sell your property (as the less-ethical real estate agents might do)
    • More detailed and considered method than online tools, considering a greater range of factors that can impact the ultimate selling price of your property
    • More expensive (independent valuations start at around $250) than online valuation or appraisals by real estate agents
    • Does not take into account the market sentiment and likely buyer behaviour
    • Does not consider subjective elements such as ‘particularly high ceilings’ or ‘a rare big second bedroom’
    • Given valuation needs to be fit for bank mortgages and insurance purposes, this method can lead to too-low valuations compared to what your property can achieve in the market

      Real Estate Agent appraisals:

      A local real estate agent will make an appointment with you and come to your property to make an assessment of the price they believe the property will sell for. They will base this estimate on their local market knowledge, for example how unique your property is, how many buyers are in the market looking for a property similar to yours, and recent sales of properties similar to yours. The appraisal service is offered for free by many real estate agents and due to the real estate agents having an excellent idea of the market conditions, they can consider buyer motivations and use this to estimate an achievable sale price for your property.

      So if you are thinking of selling, give one of our Thomson Property Consultants a call to book free of charge and no-obligation appraisal!

  • Valuation services:
    How does it work?

    Accredited valuations are usually required by the bank to approve a home loan for potential buyers. This is the most common use of valuation services. However, prospective sellers can also use valuation services. A valuer will visit your property and make an assessment based on a range of factors, including: size, condition, attributes and location.

    Pros:

    Cons:

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