How to determine the value of your property: What’s the difference between an appraisal and a valuation?

A property is worth whatever someone is prepared to pay for it, but if you're thinking of selling or buying, you'll need a more precise estimate.

There are a number various methods for determining the worth of a home, some more formal than others. Here are several methods for determining the value of a home, ranging from online valuation tools to hiring professionals for a full-fledged property valuation.

1. Online Estimators:

To come up with an estimate, automated internet estimators like Domain for owners consider the size, characteristics, and location of a property, as well as recent sales in the region. They're usually free (some require registration) and will give you a price range or bracket.

It's a solid starting point, but it's based on data from recent comparable transactions, so if the property you're trying to value is unique or high-end, these calculators might not be the best option.

It's also a good idea to do some independent research, such as looking at sold listings for comparable properties in your region.

 

2. Appraisals

Another way to discover a property’s current worth is by asking a real estate agent for an appraisal.

Not to be confused with a valuation (more on that below), an appraisal uses the expertise of an agent to determine the estimated market value of your property, but has no legal standing and should be used only as a guide.

In other words, an appraisal is the price range an agent believes the home is worth and therefore will likely sell at. Agents will also use their local knowledge when forming the estimate, as they’ll often be familiar with market demand for properties similar to yours and know how many buyers are actively looking for similar properties.

Appraisals are free and it’s in your best interests to request an appraisal from two or three agents you’re considering using. Here’s how to choose the right real estate agent for your property. 

3. Valuations

A property valuation differs to an appraisal in that it is a legally binding detailed report of a property’s market value, examining aspects of the property beyond its size and location. It is undertaken by an accredited valuer.

 

 

 

They’re usually done in situations where a definitive value is needed, such as family or partnership settlements. Banks and lenders will also use valuers to get a clear and legally-sound estimate of a home’s worth prior to approving a loan or refinancing.

But your run-of-the-mill buyers and sellers can also find advantages to this more formal valuation.

Buyers can reduce their risk of overpaying for a property and for sellers, the detailed analysis of a property’s weak spots can help you decide which renovations to make to increase a home’s value.

Ready to Sell Your Property ?

At Empower Estate agents, We provide great experience, outstanding marketing & the best of negotiations tactics to help our clients to achieve their property goals. One of our best real estate agent Sana Ullah, a well-experienced, trusted and reputed real estate agent in Sydney with his excellent marketing skills.

We believe, Buying or Selling a home is one of the biggest financial decisions of your life. That’s why finding a real estate agent with the experience to guide you through the process is key. Our extensive real estate market research and strategies will help you to sell your property at the highest value.

If you are thinking to sell your home with a professional real estate agent who can bring top results, first get your Free market appraisals from here and we will let you know soon the updated value of your home in the local real estate market.

Know the updated property value

 

 

 

 

 

 

 

 

 

 

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Content Source: Domain.com.au 

Disclaimers

Data provided in this article is of a general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice.