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 the 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!

And, 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, to 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 be undercut.

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, that they have appraised high property prices, and in fact have given the vendor false hope, like a little white lie.

Once they have the listing agreements signed and the marketing process starts the salesperson then starts conditioning the vendors to lower their price expectations. Unfortunately, this can often result in the property selling for a lower value than if the property was marketed with the correct price from the beginning.

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

How can you trust us? See what our clients have to say.

Q: How are Property Appraisals developed?

A: Firstly, comparisons are made between historic and current sales statistics from, The Real Estate Institute of New Zealand (REINZ).

A: Secondly, we look at all current listings which showcase similarities to your listing; Age, Size, Bedrooms, Location etc.

A: A combination of both.

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

In theory, Real Estate companies really should be providing similar appraisals, based on the fact that all have access to the statistics, for Real Estate Professionals. Yet, based on individual assumptions and opinions there are more often than not some differences in provided price ranges. Hence, the reason as to why property appraisals should only be obtained, as a guide. If of course you’re looking for a more precise valuation, a registered valuer is recommended. Yet, 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 that.

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 are 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 day and time!