Valuations vs Appraisals – What’s the difference?
Bank valuations and Real Estate Market Appraisals can be, and are more often than not, slightly different.
When you are searching for a home to either invest or live in, your lender will require an independent valuation to set the definitive value of the property you are purchasing.
Banks require valuations to be completed in order to work out the amount of money the borrower can responsibly pay back. For the lender, if there are complications with the loan and the borrower is unable to repay, they may have to resell the property rather quickly to recoup the amount owing on the loan.
A valuation by a licensed property valuer will take into consideration the size of the land and building, structural issues, condition of the house itself as well as comparable sales in the area. Generally, the valuer will visit the property to measure rooms and make notes of any improvements.
When you obtain an appraisal from a real estate agent, the agent will provide you with a guide of what they estimate the property to sell for in the current climate. They base their value on other comparable sales within the area. Affecting these results can include the condition and location of the property, the overall layout and its general presentation.
So how can you increase the value of your house?
Location is location and unfortunately it isn’t something you can change. But what about renovations? Can you extend the square footage of the property? Maybe an additional bedroom, bathroom or living area?
A quick coat of paint to the important rooms such as the living room or bedroom? Can you do a quick overhaul to the kitchen or bathroom? Small changes such as lighting fixtures, cabinetry or fixtures can be relatively inexpensive.
Property presentation is extremely important. Spend a weekend giving the property a general tidy up to ensure it looks neat, tidy and well maintained. Tidy up the gardens, declutter. These small tasks can be tedious and seem unimportant but will make all the difference when it comes to getting you property valued.
Want to know what your property is worth?
As a part of our service we offer our clients a free RP Data property report. To claim yours simply fill out our form and we will send it to you via email.
We can also organise a free market appraisal. Contact us today on 1300 221 476 or simply fill out our contact form and we will give you a call – Completely obligation free and no strings attached!
Until next time… Stay savvy