It’s a long-held belief that the only time an appraisal is required is when it comes time to sell, and a valuation when it’s time to buy. That underscores just how much the importance of property appraisals and valuations remains underestimated. Owners are frequently surprised as to the extent that their property has appreciated, especially if they’ve owned it for several years and haven’t undertaken extensive modernization projects. Conversely, homeowners might also believe their property is worth more than it is. This is where an appraisal, conducted by a reputable, Licensed Real Estate Agent is vital. Agents will take all aspects of a property into consideration: age, style, condition, location, comparison to other similar properties, both having recently sold and currently on the market as well as the overall state of the market at that time. And it’s done without the emotion that homeowners are fraught with. An Agent’s appraisal provides them with the necessary information to determine a realistic price guide for the vendor to consider.
But it’s not all about selling…..buyers looking to purchase with the help of a bank loan require a lender-arranged assessment. This is a valuation to determine the property’s market value, so the lender knows whether the requested loan amount is realistic. That might sound a bit mercenary, but lenders aren’t charities. They need to feel confident that the property is worth more than the buyer is seeking. Bank valuations are also valuable if a property owner is looking for finance to undertake renovation projects. The cost of a bank valuation varies but is generally up to $600 with that cost being added to the home loan. Often the best course is to secure a Real Estate Agent’s appraisal and have that in your pocket to compare with the bank valuation. The Agent is likely to be from the local area, thereby having an intimate knowledge of the local market. A Bank valuer often comes from another area and may not be fully conversant with the local market. Consequently, this can impact the valuation and potential loan amount. Having an Agent’s appraisal with a clear analysis of comparable properties, their sold price and the price guide for current listings, along with sound market knowledge allows the homeowner to challenge any discrepancies the bank valuer may have.
For investors looking to lease their property, an appraisal assists in determining a fair and appropriate rental rate – usually 6-10% of the property’s market value, while a bank valuation will assist if the property owner wants to borrow against that property to purchase another property. And of course, Municipal Councils conduct valuations on all properties in their area in order to set annual Council rates. Even if you are a property owner who’s not thinking of selling or leasing, it is important to know your property’s value for insurance purposes alone. After all, it’s probably your most important asset.
So how do you ensure you secure the best appraisal or valuation result? Well, start with your property’s presentation. Put your ‘best foot forward’ and present your property in the best possible light, and of course, be realistic. R & R Property offers no-cost, obligation-free property appraisals. Every member of our Sales Team is a skilled property appraiser and our wealth of local knowledge means, with us, your property appraisal is in safe hands.
R & R Property offers appraisals in Stroud, Bulahdelah, Dungog, Gloucester, Wootton, Boolambayte, Bungwahl, Nerong, Tea Gardens, Hawks Nest, Pindimar, Bundabah, North Arm Cove, Karuah, Twelve Mile, Swan Bay, Medowie, Raymond Terrace, Seaham, Limeburners Creek, Clarence Town, Main Creek, Monkerai, Allworth, Stroud Road and all the localities in between.
