Canberra agents explain what it means if your home gets a disappointing appraisal

Home appraisals can generate a range of emotions in vendors – satisfaction if the price is high or disappointment if it falls below expectations.

Stephen Thompson of LJ Hooker Manuka says macro factors can provide vendors with a signal on the best or worst time to go to market.

“It was down before the federal election, particularly in the wake of tighter lending conditions following the royal commission,” he says.

“Valuations at that time reflected factors depressing the market.”

Thompson says another factor can be the difference between what a vendor thinks their home is worth and the actual market opinion.

“I recommend people research recent comparable sales – as many as possible – to get a reasonably accurate read,” he says.

“They should also seek an agent’s opinion as to what the market is prepared to pay.”

Rob Cappuccio of Belle Property Kingston says the length of time a vendor has lived in a home can impact their perception of its worth.

“Their home means a lot to them and that can influence their perception of its value,” Cappuccio says.

“Their agent should be able to provide evidence of comparable sales and help guide vendors toward competitive pricing.”

Cappuccio says a valuation is only the beginning of the sales process, not an end to it.

“An agent will be looking to wrest as much value out of a home as possible,” he says.

“My tips – improve presentation; target the right buyer group and negotiate the best price possible.”

• Macro factors. External events can definitely impact local valuations. The banking royal commission followed by tighter lending practices and the pre-federal election environment dampened home prices. Timing is everything when going to market.
• Managing expectations. Many home owners decide the value of their home through rose-coloured glasses. Online research of recent and comparable sales – up to 10 – should provide a useful guide to the real value.
• Value adds. If your home valuation doesn’t meet your expectations, discuss improvements you can make with your agent. Add value through low-cost upgrades like garden maintenance, fresh paint, new carpets and curtains.