Getting your house appraised

What a valuation can tell you

A valuation offers a number of benefits for sellers, explains Joe Kealy, director of Bendigo-based Countrywide Valuers. “The most important thing is that it ensures you are fully informed about your property,” says Kealy.

“A valuation will uncover vital information such as whether the property features any easements or restrictive covenants on the title. If there is a covenant restricting the potential of the property – limiting the number of dwellings that can be built on it, for example – a valuer may suggest applying to have the covenant removed prior to putting the property on the market.”

A valuer will also help you to see any untapped potential in your property. “A valuer can alert you to the highest and best use of your property. For example, you may have a lovely home that you think is worth a lot, but a valuer might see the land size and show you that a judicious subdivision will net you a larger profit.”

A valuer is objective and will view your property ‘warts and all’. “We don’t gloss over structural issues or facts such as mine subsidence or if the property is in a flood-prone zone. While vendors may overlook these realities, buyers will not. A valuation can give you the chance to identify any issues that buyers may use to try and negotiate down on price.”

Valuers also have access to all recent local sales data, so they can accurately compare your property to others that are similar and have recently sold.

“While some vendors keep an eye on the local market, others may have no idea what similar properties are selling for. Many sales results are not made public; however, valuers have access to all comparable sales data so they can compare apples with apples.”

Valuation: The process

A valuation involves a title search (including checking measurements, easements and restrictive covenants), detailed on-site inspection of the property, collation and analysis of recent sales evidence, calculation of value or value range and the preparation of a written report.

“A pre-sale valuation should also include practical recommendations for the vendor to help them achieve the best possible price.”

Appraisal or valuation?

While a real estate agent may offer you an appraisal of your property and an estimation of the sales price they think they could achieve, this is not the same as a valuation.

“While an appraisal is a general estimate only, a valuation involves a much more detailed assessment of the property and can only be carried out by a qualified valuer.

“Valuers charge a flat fee and are not interested in winning a sales listing. Hence a valuation by a qualified valuer is more objective than an estate agent’s appraisal.”

If you plan to sell, obtaining a valuation from a qualified valuer can put you in the box seat as a vendor.