A property appraisal could lead you to a better understanding of your home’s worth and overall financial situation. An appraisal is where an agent reviews your home in-person, or even online, to give you an estimation of what your property might sell for. This figure is influenced by many factors, including the current market conditions and whether your home is in high demand.
Read on to understand what an appraisal is and why you need one.
What is an appraisal?
An appraisal is a real estate agent’s estimate of the sale price of your home in current market conditions. An agent will take into account their contextual knowledge of your local market, as well as the current amount of buyer demand for properties like yours. A good agent will give you this information, so you can put their estimation into a larger context. You’ll also be provided with recent comparable sales which will give you more information on the current market.
To determine the estimated sale price of your property, agents will conduct a Comparative Market Analysis (CMA). They find local properties like yours that have sold in a certain amount of time. Usually agents look for sales in the last six months.
After conducting this CMA, they will then come to your home to assess the property in more detail. Agents will look at property size (including the size of the building and size of the land), the fit out of your home, the location, the condition of your home and the ease of access. It’s also useful to notify agents of any planning approvals your home might already have. All of these factors help paint a better picture of what your home could be worth.
They will then apply their knowledge of local market trends to deduce a final price estimate for your property. This will be backed up by plenty of evidence and research that they will provide to you.
What are the steps of an appraisal?
Requesting an appraisal is simple. You can get an in-person appraisal, where an agent comes to your home, a virtual appraisal, where you take the agent on a video tour of your home, or a digital appraisal which is entirely computer-generated which is discussed below. The digital appraisal won’t take the same or as many factors into consideration as an appraisal with an agent.
How to organise an in-person appraisal.
Step 1: Research the agent you might want to sell your home. We recommend either heading to our list of agents and searching for your suburb or looking at our sold properties and filtering by your suburb. The first will show you the agents that sell in your area and the second approach will show you properties that have recently sold in your suburb and then you can get in contact with the agent who sold them.
Step 2: Submit an appraisal request form, you can do this directly or on your selected agent’s page.
Step 3: Your local agent will reach out and organise a time to see your property in-person or via video call
How to access a digital appraisal
If you’d prefer a digital report of what your property is estimated to be worth you can get a real-time report following the steps below. Find out more about how your estimate is generated.
Step 1: Head to Avnu’s Property Report
Step 2: Search for your property
Step 3: Confirm your property and details
Step 4: Access your report instantly
What is a digital appraisal?
A digital appraisal is conducted online by an algorithm. Note, it isn’t simply a property appraisal conducted through webchat. An individual will search for their property, and the algorithm generates the price according to other similar homes that have sold recently.
Avnu’s tool for this is our Property Report, but it’s far more than just a digital appraisal. It provides information about the local market in the “Market Snapshot” as well as plenty of economic indicators for the entire property market.
From here, you can then decide whether you would like to contact an agent to discuss the outcome of the online appraisal and perhaps even selling strategies, or you might like to wait to sell. Find out in more detail what exactly a digital appraisal is here.
What’s the difference between a valuation and an appraisal?
It’s important to make a distinction between an appraisal and a valuation. An appraisal is an estimate provided by a real estate agent and is based on their educated opinion, and knowledge of local market trends and current competition.
A valuation is conducted by a qualified property valuer, and the figure they give you can be used in court or by a bank. This figure can be different from one provided in an appraisal because it dictates what the home’s real value at one point in time. An appraisal tends to take into account any potential renovations to the property that you could conduct before listing, and even market trends over the coming months.
What questions should you ask in an appraisal?
An appraisal is a great time to find out if the agent is the right person to sell your property. The first question you should ask any agent is if they have a license and if they could show you.
Here’s a list of a few questions that you might like to ask to discern if they are someone you’d like selling home. Before you ask them, you may like to think about the answers that you would want to hear, so that it’s easy to decide which agent to use.
Some questions you might ask are:
- What were your last five local sales? How long were they on the market and how much did they sell for?
- Who do you see buying this property?
- Which method of sale do you recommend for this home? Why?
- What improvements can I make to increase the chances of selling my home and increasing the sale price?
- How long do you think it might take to sell this property? What’s your personal average days on the market?
- Is now the best time for me to sell my property?
- How accessible are you as the main sales agent?
DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker Avnu will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.