The value of a property appraisal
How to find out what your property is really worth
Properties in Greater Western Sydney, such as this one at Lethbridge Park, have skyrocketed in recent years.
Your home is your biggest investment, but with today’s house prices having risen at lightning speed in recent years, do you really know what it’s worth?
We all have things we need to prepare for financially. Perhaps you would like to upgrade to a bigger house? Invest in a new business? Help your ageing parents transition into care? Certainty about the value of your biggest asset gives you peace of mind when planning for your future.
Knowing the true market value of your home ensures you are armed with all the information you need upfront when working out financial plans or engaging in conversations with your bank to ensure you understand the equity in your home.
How do I find out the value of my home?
There are two ways to value your property. A ‘property valuation’, which is a formal valuation carried out by a bank or professional valuation consultancy, or a ‘property appraisal’, which is an informal obligation-free valuation performed by a real estate agent at no charge.
What’s the difference?
Firstly, local knowledge. Real estate agents live and breath local property every day, which is why they are commonly asked to assess the market value of properties in their area—they have intimate knowledge of the local micro-market.
Neighbourhood real estate agents have their fingers on the pulse and can identify and respond to market fluctuations to provide a realistic estimate. This gives them a head start over traditional bank valuers, who are often based elsewhere and don’t understand the nuances of the local market.
An agent uses their knowledge of the local area and looks at recent sales, cross matching your property with other comparable properties in the surrounding suburbs to gain an idea of its market value. They also inspect your house in person to assess the unique features that make your home special and add to its value. This extra level of personal attention ensures you receive an accurate appraisal value.
In comparison, a bank valuation can often be performed either by a drive by, or a computer-generated valuation (unless you have paid for a full service valuation), which doesn’t capture the full potential of your home and its various features.
The second major difference is in the actual valuation; that is, the final number that your valuer presents you with. Bank valuations are notoriously conservative, often coming in at 10–20% less than the current selling prices of comparable homes.
In contrast, a real estate agent doesn’t need to respond to concerns about finance from a lender or other institution, so they are free to provide an accurate, realistic estimate of your home’s value. They have a vested interest to do this; after all, they will be the ones selling it should it go to market. With a slowing market, being clear on your property value means you won’t miss opportunities. A good agent wants to get the maximum price for your property, so they need to strike the right appraisal value to ensure maximum return while also managing seller expectations.
Can I maximise the appraisal value of my home?
A lot of the factors that contribute to the value of your property are beyond your control; like council zoning, planning restrictions and physical location, however, there are some things you can do to maximise your valuation. Think about presentation and home styling; make sure your property is neat and tidy outside and uncluttered and clean inside. Make sure renovations and repairs are complete, and provide your agent with information about any home improvements you have made that may add to the value of your property.
Not sure where to start? Read our top tips for home styling here.
Ready to unlock the value of your home? Our team has more than ten years of professional experience as neighbourhood real estate specialists in Western Sydney and will utilise our deep industry experience and local knowledge to assess and value your home.
