What to expect from an Appraisal…
A comprehensive appraisal should provide an objective assessment of what your property is likely to sell for in the current market. This estimate of price (called a Market Price) can however, vary somewhat, depending on the agent’s expertise. Therefore, it can be beneficial to obtain multiple appraisals which should help you find a general consensus on price. Seeking multiple appraisals may also aid in filtering out overestimated and underestimated prices. A sound estimate of Market Price also lays the foundation for an informed sales and pricing strategy once you’re ready to sell your property.
Factors Influencing Price Estimates
Several elements play a role in determining a property’s Market Price. These include elements such as:
- Current market conditions
- Recent sales
- Current listings for sale
- Your property’s attributes
Ultimately how your property’s location, land size, the quality and size of the home, views and the presentation of the home, fare against comparable sales and current listings, will ultimately dictate the estimate of price.
Key Components of a Comprehensive Appraisal
There are a few key inclusions that every agent should be providing in their appraisal for you:
- A description of your property
- Recent sales of properties comparable to yours
- Current listings comparable to your property
- A comparison of the key sales and listings against your property
- Local market statistics
- A comprehensive summary explaining the agent’s rationale of Market Price.
Anything less than the above is simply insufficient. For instance, if an appraisal is merely a brief email or a single page with little more than indicative prices of similar properties, it doesn’t really offer true insight. How can you ensure the accuracy of the price estimate?
On the other hand, when an agent presents a meticulous multi-page report, detailing market movements, specific recent sales and current listings, comparisons, and an analytical breakdown of the proposed price, you can not only feel confident in their evaluation but also in their professional approach – hopefully this is also an indication of the way they’d handle the sale of your property.