What’s involved in a property appraisal and when should I get one?
Chances are you’ve seen those real estate brochures in your letterbox offering you a property appraisal.
And perhaps you’ve thought that’s not for me as I’m not considering selling. The truth is having your property appraised isn’t just something you might do if selling is on your immediate agenda.
There’s a number of reasons why it might prove worthwhile when it comes to understanding your financial position and also the state of the market.
So, what’s involved in a property appraisal and why might you consider getting one?
What is a property appraisal?
A property appraisal is designed to determine how much your property would be worth if you were to sell it in the current market.
It takes in a range of factors including recent nearby sales, current demand for properties similar to yours and the features or standout benefits of your specific property.
A number of real estate portals and agencies offer virtual estimates as to what your home might be worth, but a property appraisal sees an agent visit your home and take a short tour to truly understand its value.
How long does it take?
Property appraisals take as little as 20 minutes and see the agent visit the home in person to view its condition, features, attributes and points of difference.
They then combine this information with data and insight on what’s recently sold in the area, and how much buyer demand there is for properties similar to yours to provide a price guide of what you could achieve if you were to list your home in the current market.
Who should appraise your property?
If you’re considering getting an appraisal of your property, an experienced local agent is the best person to undertake this task.
After all, they work in this arena each day, transacting properties and liaising with buyers, so have an intimate understanding of supply, demand, recent sales and how your property compares.
Why would I get one?
Most people associate property appraisals with an immediate plan to sell their home.
And it’s true, if you’re considering selling, calling in agents to indicate the price position they would give it is an early part of the selling process.
But that’s not the only time a property appraisal can be useful.
It can also be a good way of understanding your net worth and can also be a way of learning about any improvements that might be required to realise your property’s true value, or finding out whether you’re in a position to channel some of your property’s value into other avenues like investing.
Net worth
As the past few years have illustrated, the property market can change quickly. It’s also incredibly localised with increases or decreases in values varying widely from state to state and even suburb to suburb.
An up-to-date property appraisal gives you a good indication of your property’s current position in the marketplace and allows you to better understand your complete financial position.
Property improvements
When an agent appraises your home, they’re often looking at it from the perspective of how it compares to other similar properties.
This affords you an opportunity to gain a great insight into the improvements or changes you could make to fully realise the value of this important asset.
Investing
If you’re considering expanding your property portfolio into investing, an understanding of the current market value of your home is essential.
An appraisal offers an insight into how much capital your might have at your disposal, should you consider using the equity in an existing property to fund the purchase of another.
Just in case
Finally, we all know life can change at short notice.
And while selling might seem like something to consider in the future, it’s always a good idea to know exactly where you stand just in case something unforeseen happens.
Considering an appraisal?
Whether you’re considering selling or just seeking to understand exactly what your property’s worth, why not chat with one of our friendly agents on 1300 438 439 to understand the state of play in your local market?
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
