What is a real estate appraisal?
Even if selling your home is a distant far-off goal and you don’t want to commit to anything right now, a market appraisal is an excellent way to uncover your home’s value in the current market. Knowing this can help you plan and prioritise any future renovations or improvements. An appraisal is also an opportunity to interview a local or recommended agent and decide if they are someone you could work with in the future.
How does an appraisal work?
Essentially an appraisal is just an informative chat with a licensed real estate agent who will come to your home and talk you through a few points about your home and its price position in the current market. This will allow you to:
- Get an estimate of the value of your home
- Discover ways to add value to your home
- Learn about the future of your suburb
- Find out what selling method best suits your home
- Have an opportunity ask any home selling questions you may have
What information will I be given?
The value of your home
In an appraisal agent will provide you with an estimated value of your home and this will be a price range that your home is likely to sell within the current market. This price range is based on comparable properties and relevant market statistics see below. If you aren’t looking to sell immediately, this figure may fluctuate as the market changes.
Comparable properties
The agent will also show you comparable properties that have either recently sold or are currently on the market. These properties will be similar to your own in a number of ways; location, size and condition and type of land tenure and can further guide you on the value of your home.
Market statistics
You’ll also receive property statistics relevant to your area to back-up the information the agent shares with you. This can include:
- Number of homes for sale in your area
- Average sale price for your area
- Auction clearance rates
Different home selling methods explained
Your agent will explain the various selling methods available to you to ensure you know what your options are should you decided to sell. A few commonly used methods in the current market are auctions, deadline sales and exclusive listings. Your agent will discuss the pros and cons of each method and recommend the ones best suited to your home.
How to market your property
When you are ready to sell your agent will show you different marketing options created to generate buyer activity and inspections of your home.
Information about the agency and agent
Finally your agent will tell you a little bit about themselves and their key sales skills that will benefit you and the strengths of the agency they work for. Experienced agents will often email you this information through prior to viewing your home. You’ll learn why they believe they are the best candidate to sell your home.
Can I ask for advice on how to prepare my home for sale?
A market appraisal is an excellent opportunity to ask an agent for advice of how to get your home market ready. As an expert on property value, they’ll know the best ways to increase the amount potential buyers are willing pay. Many agents will have information you can use to help you prepare your home for sale.This should allow you time to to implement some of the recommendations before listing your home on the market.
What other questions should I ask the agent appraising my home ?
Here are a few questions to get you started:
- What properties have you recently sold?
- What is your last 50 auction clearance rate?
- Do you have any case studies of your sales I
- Do you have any testimonials or reviews from past clients?
- How do you communicate with your buyers?
- How will we communicate? And how often?
What should I do after the appraisal?
You (and any joint owners) should look over the information the agent has shared with you. Consider how you felt about the agent and their approach to your property. If you are ready to sell and feel comfortable with the agent you spoke with, then contact them to discuss the selling process in more detail. Any good agent will be perfectly happy to give you all the time and space that you need.
Remember:
- An appraisal is not a commitment and you should come away feeling informed, not pressured.
- Ask any questions you have, no matter how trivial you think they may be.
- Take things at your own pace good agents work to owners needs and will still be happy to sell your home years down the track.
Ready to get started? Request an appraisal here