How Much is My House Worth Today?
When selling, it’s important that you know the right price of your property. This ensures that you get the best value possible for your home, especially in our current situation. You can do so with valuation and appraisal—but what’s the difference? Read on to find out:
Valuation:
Who does it?
A registered valuer or online valuation calculator can do a property valuation. A valuer has a corresponding fee for this service. Online valuators are usually free.
What is it for?
One needs valuations when a definite value is required, such as in financing or refinancing a property purchase, property settlements, settlement of deceased’s estate, and the like.
How is a valuation determined?
An online valuation calculator needs your property’s address, the number of baths, rooms, car spaces, and other notable amenities. Once you provide those information, they will send a free report to your e-mail.
A registered valuer, on the other hand, will start with recent sales of comparable properties. After that, they take the following factors into consideration:
- Type
- Size
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Caveats
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Structure and Condition
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Location
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Zoning
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Planning Restrictions
Appraisal:
Who does it?
Real estate agents do property appraisals. This is a free service they do for prospective clients.
What is it for?
Real estate agents do appraisals for homeowners who want to sell or rent their property.
How is an appraisal determined?
Agents will base their appraisals on the other recent sales in the area and their experience. They may also take curb appeal and the property’s style in consideration. Basically, the amount they will tell you is the price they can get for you if they were your agent.
Good, local agents will have a good basis on their appraisals as they have a good knowledge of the area, the type of buyers and their interests.
Which one should you use?
Agent appraisals will give you a good glimpse on how much your property will sell at the time. Remember that this amount may differ depending on which agent you talk to, market conditions, and the prices of comparable sales near your property.
On the other hand, a professional valuation will tell you how much your property is worth based on the property itself and the market conditions. However, it won’t tell you how much one might be willing to pay for it.
If you’re looking to use your home as a collateral for a loan, or to refinance your new home, a valuation is the way to go. If you want to sell your property, going for an appraisal is the better choice. Remember that the amount a valuer or an agent tells you now may change three to six months later, depending on the market conditions and other factors. Also, make sure that you see proof for the number an agent or a valuer will provide.
We hope that this enlightened you on how to determine property prices. If you need property advice or help on selling your home, don’t hesitate to reach out to us. We’re only a message away.
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