How to determine the value of a real estate property?

What do appraisers look for to find a property’s value? There are a variety of different factors that impact an appraisal, including the overall housing market as well as individual amenities, the amount of square footage, and the condition of the property. In terms of commercial property appraisal methods, things are pretty similar, but there may be a greater premium on location.

How important is the location for real estate investments?

As we just mentioned, for commercial establishments, location means a lot. For residential areas, it can vary. However, if a home is in a desirable area, with low crime, good schools, and plenty of activities, it will likely be reflected in the overall value.

What is the scope for a civil engineer in property valuation?

Generally, a civil engineer will help with some of the technical aspects of the valuation. For example, they will determine the square footage of both the dwelling and property itself. They will also look into factors like the height and nature of the structure. Remember, there’s a lot of elements that go into valuation, and civil engineers play a vital role.

What is the best way to prepare for appraisals?

There are several steps you can take, but they all revolve around making sure your home is at both its best and most functional before the appraisal team arrives.

For example, you want to make sure that all safety equipment is working, look for and address signs of damage that may lower the value, and update certain items that may seem outdated.

It’s also a good idea to look into what similar houses around your area are selling for, to get an idea of what your home may end up making.

Why do home appraisals cost so much?

An appraisal is a large-scale job that generally requires several different professionals to do properly. On top of that, the bigger the property, the more you have to pay. There are free property appraisal sites out there, but frankly, you get what you pay for in terms of accuracy. It’s very difficult to figure out the full value of a property without looking at all the specific factors. However, these tools can be used to give you a ballpark to estimate when you are first getting ready to sell a property.

Are appraised values public record?

No, and you aren’t obligated to share the final value with anyone unless you wish to.

Do most homes sell for appraised value?

Not necessarily. In some cases, the price may end up going down during negotiations with a buyer. Rarely do homes sell above appraised value, so in practice, see it as a sort of upper limit.

What if the appraisal comes in low?

In this scenario, you have to evaluate whether it makes more sense for you to lower your asking price for the property or to try and address some of the issues that led to the lower appraisal. There’s no right or wrong answer here, just what fits your budget and timeline.

What if the appraisal comes in higher than the offer?

This is extremely rare, and generally, if it’s the case, you’ll walk into your new home with additional equity.

Conclusion

Understanding the appraisal process is essential when both buying and selling the property to ensure that you get the best deal possible.

However, there are a lot of other facets worth looking into as an Australian real estate professional.

For example, when trying to expand your client base, it’s essential to have data for real estate calling available.

Cold calling can be a great tool to improve your marketing, but only with top qualified leads to draw from.

With these leads, you’ll be in a good position to make a proper appraisal count for more.