All you need to know about Real Estate Appraisals

Two people are ready to sell their home, which person are you?

Person A: I’ve never sold a property before but I’m ready to take the leap. Tell me one thing, are Real Estate Appraisals worthwhile? Surely, no one would know my property better than I do?

Person B: I’ve previously sold property, but I’ve never been truly convinced that appraisals are worthwhile, can you convince me? 

You’re always either an A or a B!

Yes. Some people do know your property better than you may think that they do.

Firstly, appraisals are a useful way for property owners to determine an estimated value for their property. Additionally, it provides an opportunity to get to know your chosen Real Estate Agent, to see if they really are the ‘right’ fit to sell your home.

Whilst, Real Estate agents and salespeople are not registered valuers, their appraisals are simply an indication of what your property could be worth in the current market/s. They provide you with a greater understanding of what price to list your property for, based on the access that they have to historic and current sales data.

At the end of the day, the market will always have the upper hand and is always the main determining factor, regarding the price that the property sells for, but it’s always great to have a preconceived idea, no one wants to undersell their home!

Q: Can you trust a Property Appraisal from a Real Estate Agent?

A: Not all the time. There have been previous cases which have found salespeople to have ‘brought the listings’, in Real Estate terms. Meaning, they have appraised high property prices, and in-fact have given the Vendor false hope of what their home is worth. At Rise we provide our honest feedback with the knowledge we have and back this up with evidence.

We will tell you honestly where we see your property sitting within the current market, we may need to reassess at times but we regularly keep you up-to-date on what is happening in the market, so that we can make informed decisions.

See what our clients have to say about us!

Q: How are Property Appraisals developed?
  1. Firstly, comparisons are made between historic and current sales statistics from, The Real Estate Institute of New Zealand (REINZ), property smarts and property guru.
  2. Secondly, we look at all current listings which showcase similarities to your listing; Age, Size, Bedrooms, Location, Capital Values etc.
  3. A combination of both, of the above.

All points and sourced information is then combined, in accordance with our market knowledge and current property market forecasts, to then determine and provide an overarching price range for the property.

In theory, Real Estate companies really should be providing similar appraisals, based on the fact that they all have access to the same statistics. Yet, based on individual assumptions and opinions, there are more often than not some differences in appraised price ranges.

Hence, the reason as to why property appraisals should only be obtained, as a guide, and if of course you’re looking for a more precise valuation, a registered valuer is recommended. However, at the end of the day, it won’t predict what exactly the market will pay, the buyers are the only ones that can predict this.

No matter what stage of the property market you’re currently in, or the amount of previous experience that you have, property appraisals are important and worthwhile. The most exciting part being, is that they’re FREE, so what do you have to lose?

All you have to do is get in-touch with Rise to organise a date and time that’s suitable!