A property appraisal is an estimate of the price you may get for you home when selling privately or via auction. Real estate agents offer this service free of charge, allowing you the flexibility to obtain a second or third opinion.
A property’s appraisal value is influenced by recent sales of similar properties in the same area and by current market trends. The home’s amenities, the number of bedrooms and bathrooms, floor plan and square meterage are also key factors in assessing the home’s value. The appraiser must do a complete visual inspection of the interior and exterior and note any conditions that adversely affect the property’s value; such as needed repairs.
When enlisting a real estate agent to appraise your property it’s advisable to have a list of questions prepared. Asking specific questions will help you gain an understanding of the local market and where your property fits in, and how you can achieve the best possible sale price.
Questions to consider asking:
Do you have advice on how I can improve my property in order to attract a higher sale price?
If you’ve lived in your home for some time you may be ‘blind’ to its shortcomings or how others may view it. Real estate agents see many different homes and understand what current buyers are looking for. They are also experts in knowing what improvements are likely to make your particular home more attractive to buyers.
Agents may offer simple suggestions such as a fresh coat of paint, carpet cleaning, garden clean-up, decluttering and home styling. Some homes might benefit from a partial or full renovation.
What’s the current state of the market in my suburb?
Property appraisal estimates are largely based on comparable home sales in the area which the agent will be able to provide to you. This may be verbal or they may have a printed flyer or booklet to leave with you. Ask if they don’t offer one.
How long are properties in this area taking to sell?
The rate in which properties sell is determined by several factors – time of year, amount of properties available, proximity to local amenities and schools. Asking the agent what the current situation is will help you determine if it’s a good time to sell.
Should I sell at Auction or Private Sale?
There are many key factors in deciding whether to auction your property or sell privately. These factors are typically influenced by local market conditions, but also need to suit the vendor, their property and their current situation.
The agent should discuss the following with you:
- An auction campaign is typically run for 4 weeks
- The vendor has the opportunity to sell before or on the day of the auction, or directly after in the event the property is passed in
- The vendor has the ability to set an auction reserve price and settlement date.
- The auction process encourages competitive bidding; there is no price barrier
- Private sale properties typically take between 3-6 weeks to sell
- Private sales can provide greater negotiation flexibility, for example, the contract can be entered into subject to a building inspection or finance approval
- The vendor is less restricted by the length of time the home is listed for sale unlike auction where you are working towards a specific date
- If keeping a low profile and a confidential result is important, a private sale is the way to go
If you’d like to have your property appraised contact us today