How a market appraisal helps you understand your property's value
Thu September 07, 2017
How much is your property worth? Whether you're looking to sell right now or later down the track, it's definitely beneficial to find out. The best part is you can find out for free. A market appraisal will estimate your home's value and give you an idea of what you could sell it for in the current market.
Let's find out more about how market appraisals work.
A market appraisal is an estimate of what your property could sell for in the current market.
How does a market appraisal work?
A market appraisal is an obligation-free discussion between a real estate agent and yourself that aims to estimate what your home could sell for. The agent will have conducted thorough research beforehand using public data available about your property, as well as average sale prices in your area and other factors that could impact the value of your home. Their estimate will also be informed by taking a look at your property and discussing it with you.
Some factors that will be taken into consideration when appraising your property are:
- Number of bedrooms and bathrooms
- Extra features (swimming pool or garage)
- Renovations or extensions
- Vehicle access and parking
- Similar local property sales
- Proximity to good schools, universities and public transport connections
- Upcoming infrastructure projects
What's the difference between an appraisal and a valuation?
Property valuations, unlike appraisals, are conducted by registered property valuers and incur a fee. Valuations are used for more formal purposes such as when applying for a mortgage, establishing the value of a deceased estate or when resolving a dispute, as they provide a definitive value.
A market appraisal is only an estimate of what your property could sell for in the current market, using the agent's knowledge of the local area and a consideration of the factors listed above. It is not definitive and cannot be used for legal purposes. Rather, it is designed to gauge current market conditions and give you an understanding of where you stand, and how you could potentially increase your property's value.
When should you get a market appraisal?
You'll need to get a market appraisal if you're thinking about selling your home, but this is not the only time you should consider finding out the value of your property.
Getting regular market appraisals is a good way to stay on top of current market conditions.
For example, it's a good idea to get a market appraisal prior to undertaking renovations or making extensions to your property. At the same time, your agent could also give you an idea of how much the value could increase once renovations are completed. Once the renovations are completed, another market appraisal can determine how much equity you've gained from the additions to your home.
Even if you're not considering selling your home or undertaking renovations, getting regular market appraisals is a good way to stay on top of current market conditions. Knowing where you stand will always be advantageous, as you can use this information to help you add value to your property over time, or pick the best time to sell.
How can you get a market appraisal of your property?
Laing+Simmons offers obligation-free appraisals of properties across NSW. Simply fill out our market appraisal form and we'll be in touch to arrange an appointment.