Property Appraisals Vs Valuations

PROPERTY VALUATION Vs PROPERTY APPRAISALS – Are they the same thing?

Clients often request a property appraisal or property valuation on their home, not knowing the two are entirely different. Well, kind of. Anyone who offers a property appraisal or valuation on your home can tell you what they believe your house is worth. But beyond that, the two are not the same thing.

WHAT IS A PROPERTY APPRAISAL?

A property appraisal estimate is what Ray White Officer can offer. It’s a free service. An agent from our office will attend your home, inspect the features of the property and using their market knowledge and what has sold recently as a guide, the agent will be able to supply you with a price they believe the house would sell for in the current market. A property appraisal typically takes between 15 and 20 minutes to complete.

DESKTOP PROPERTY APPRAISAL

Sometimes, it might not be practical for an agent to visit your property. Maybe your property is an investment with other people living in the house you don’t want to disturb. Or perhaps you’re only seeking an approximate idea of the value of your home, and as such, you don’t want an agent visiting or inspecting your property. You can request a desktop appraisal. Again, they are free but not entirely accurate as the agent may not have enough information on your home to precisely determine what your house would sell for.

PROPERTY APPRAISALS PROS

• They are free
• Can be done remotely by any agent
• They give a homeowner an accurate idea of what they can sell for
• Normally relatively quick and efficient

PROPERTY APPRAISAL CONS

• The are not legally binding
• The price may differ depending on the agent you ask to undertake the appraisal and their motivations

WHAT IS A PROPERTY VALUATION?

A real estate property valuation is a legally binding opinion undertaken by valuers, not agents. A property valuation typically costs anywhere from $500 to $1000 and, in some cases, more. A property valuer will use evidence of what has sold in the immediate surroundings of your property, and they will generate a price of what they believe your house is worth. The key difference here is the valuer is not giving you a price based on what they think your house will sell for; they are giving you a price based on what they believe the home is worth. Property valuations are often required when disputing a home’s value in a legal or court setting.

PROPERTY VALUATIONS PROS

• Can be used in court as legal evidence of what a house is worth
• Are independent and free from bias

PROPERTY VALUATION CONS

• Cost money
• The price doesn’t always reflect what it will sell for
• Can only be undertaken by a property valuer

The distinction between property valuation and property appraisal holds significant implications for property owners seeking to understand the worth of their homes. While property appraisals, offered by real estate agents, provide a quick and free estimate based on market knowledge, they lack legal binding and may vary depending on some agent’s motivations. On the other hand, property valuations, conducted by independent valuers, offer a legally binding, unbiased opinion of a property’s value, albeit at a cost. Recognising the differences between these processes empowers homeowners to make informed decisions, whether for selling, legal disputes, or strategic planning, ensuring they choose the right method aligned with their specific needs and objectives.