Although they may appear to be similar, there are some key differences between ‘property appraisals’ and ‘property valuations’. Simply put, both look to find the value of a property. However, although appraisals can help with finding the value, they may not be a true sign of its worth. Let’s break them down:
Appraisals are generally informal in nature. Real estate agents use appraisals to estimate a property’s value based on their assessment of the market and experience. As a result, they may come up with a figure that may not be entirely accurate. For instance, real estate agents may overestimate the value to secure a better reserve price for their clients. One of the key features of appraisals is that they are an estimate of the market value of a property. Because of this, you wouldn’t be able to rely on these in a legal standpoint. Often, you can get these free of charge. Generally, appraisals act as a guide to pricing for a potential buyer or seller of a property.
Property valuations look to find the actual value of a property from an independent and fair point-of-view. This requires a valuer to assess comparable sales of similar properties, and a make a detailed inspection of the subject property to find a fair market value. A detailed inspection of the subject property will examine the condition, features of the property, as well as any potential issues and faults that may affect the market value.
In short, you will get a definitive value of your property with a valuation. You can use this to obtain finance from a lending institution, a property settlement, for tax purposes, to resolve disputes (such as family law cases) or to determine the value of a deceased estate.
If you need a detailed valuation report from a registered and experienced valuer, contact us on 02 8999 1090 or end us an email through our contact page.
We conduct our valuations in Canberra and in Sydney.