One thing we often get asked is what is the difference between a market appraisal and property valuation of a property.

There is a difference, and it’s important to understand the difference so you know when to use them and why the appraisal figure may differ from the valuation figure.

Market appraisal

Appraisals are carried out by registered Real Estate Agents and Property Consultants, and give an owner a price guide if they put the property on the market at that point in time.

We don’t charge for this service, and we look at a lot of factors which affect the value of a property such as:

• where the property is located
• the size of the property
• the structure of the property
• its condition
• features of the property
• its layout
• redevelopment opportunities

We also ask if there are any known caveats or encumbrances on the property and we take the local council zoning into consideration.

Other factors we look at when making an appraisal are recent sale prices in the locality and we highlight to potential vendors what the market is doing so they can make a decision depending on their circumstance; for instance, if it’s a slow market, a property with a higher price tag may take longer to sell.

Ultimately, when a property is put on the market, it will only get the price someone is willing to pay, and sometimes it depends on the buyers’ circumstance and the quality of the agent and their marketing. Even if it is a depressed market, if a buyer needs to move quickly and really wants the property because, for instance, the property is in the zoning area for a particular school, the property may well sell at the higher price tag.

It is also important to note, market appraisals may vary between estate agents. Some may give, what we consider, unrealistic figures in a depressed market.

This is why we always advise our clients of all the factors they need to consider, including marketing options (another, often underestimated factor in the selling process), when putting a house on the market.

Valuation

A valuation is when a definitive value is needed usually for legal reasons; this may be for instance, for a deceased estate or obtaining finance from a lending institution. We have known courts to order a valuation when there is a dispute, such as in a divorce settlement.

It’s important to note, a valuation can only be carried out by a licensed valuer and you will be charged for the service. As the valuer is legally responsible for the information it provides, you will receive a very detailed valuation report.

These reports start at around $500 + up to many thousands of dollars depending on the property.

As one of Newcastle’s longest established real estate offices, we know property. Whether it is from an investment or homeowner’s point of view, we’re always looking at innovative ways to help you get the best from your asset.

Drop into the Cardiff office or give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au – we’d love to hear from you.

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