A property appraisal, which is an estimate of a property’s market value, is created by real estate agents through a process that includes a property inspection, market research, and analysis of comparable sales.
The agent will assess the property’s condition, features, and location, then compare it to recent sales of similar properties in the area to arrive at a valuation.
In most cases, the appraisal process is one of the first things you do when you decide to sell your home. In most cases, a vendor will ask two or three agents to `bid’ for your business and their appraisal is one of the key centrepieces to securing a listing.
Remember, your agent conducts property appraisals as a part of their training and ongoing market research.
Here’s a breakdown of the process:
Property Inspection: The agent will visit the property to undertake a physical inspection, noting its condition, features, and any unique selling points. They will assess the property’s size, layout, number and size of bedrooms and bathrooms, and overall condition, including any renovations or upgrades. Factors like location, access, and any potential areas for improvement will also be considered.
Market Research and Analysis: The agent will conduct a Comparative Market Analysis (CMA) by researching recent sales of comparable properties in the area. They will analyse factors like the size, condition, and features of these comparable properties, as well as their selling prices and days on the market. The agent will also consider current market conditions, including buyer demand, interest rates, and other relevant factors.
Appraisal Report: The agent will compile their findings into a report, providing an estimated selling price or range for the property. The report will outline the comparable sales data, the agent’s reasoning for the valuation, and any factors that may influence the property’s market value. It’s important to remember that a property appraisal is an opinion of value and not a legal document.
Now – it’s time to compare: here’s a few observations. Agent A values your home at $1.2 million and says the average time to sell could be 60 days. Agent B values your home at $1 million and estimates a 30-day selling period. Agent C values your home at $1.1 million and should take around 45 days on the market.
Can you afford to wait for the larger amount, sell quickly at the lower amount (so you can buy quickly), or do you go in the middle? Only you know the answer!
Source: information has been sourced from industry platforms including REA, Domain, Aussie Home Loans and the Loan Market.
Properties On The Market
Visit The Fold Property to view properties on the market throughout the Southern Highlands.
68 Old South Road Bowral 
- For Sale - Price Upon Request
32 May Street Robertson
- $1,600,000 - $1,700,000
29D Oxley Drive Bowral
- For Sale - Price Upon Request
8022 Illawarra Highway Sutton Forest
- Guide $4,000,000 - $4,400,000
32 Charlotte Street Burradoo
- Contact Agent
364 Myra Vale Road Wildes Meadow
- Contact Agent
Gowan Brae, Berrima
- For Sale - Contact Agent
53A Church Road Moss Vale
- For Sale - Price Upon Request