The difference between an appraisal from a real estate agent, and a professional valuation:
Many people confuse the services of what a professional property valuer offers with the services of your local real estate agent when it comes to putting a price on your property. The number one difference between the two is ‘their motivation’. A professional valuer is obligated by law to give you a totally independent valuation based on research and evidence, whereas a real estate agent is trying to get you to list your home with them.
Real estate agents do have a great deal of knowledge when it comes to the property market, but ultimately they don’t get paid until they list and sell a property so unfortunately that motivation can cloud their judgement when it comes to giving you an appraisal.
There are two factors at play when you ask a real estate agent for an appraisal.
1: You want the highest price you can get
Real Estate agents know that you want the highest price you can get for your property and that you are probably meeting with a few different agents before you sign up. So, the agent that presents as the most confident that they can get you the highest price is going to be the most appealing, however the asking price is not often the final selling price. Unfortunately, agents have been known to inflate their appraisals to get your listing, then after it has been on the market for a few weeks they advise you to lower the price to get a sale.
2: The agent wants a quick sale
Real estate agents only get paid when your home settles. They do not want it to take months for your home to sell, causing them to do more and more home opens with no one showing up on the chance they could get an extra few hundred dollars in commission because of a higher asking price. So, sometimes agents will appraise your property at the low end so that they can get a quick sale. You are none the wiser of the true value of your property, it sells quickly, the agent looks good and gets paid!
In both of these scenarios the motivation of the agent is to get the sale. Getting your business is driving their appraisal.
Contrast that with a valuation from a professional property valuer.
A professional property valuer gets paid a fee for their valuation. They are (or should be) completely independent and unbiased. They are working in your best interest as they have nothing to gain from giving you a high or low valuation figure.
A professional valuer uses a number of different methods to determine the true market value of your property. They consider recent comparable sales just like a real estate agent does, but they also look into …….
A professional valuation not only provides you with a figure, but also a comprehensive report that you can rely upon to make important decisions in relation to your property.
So, if you are thinking about selling your house, then investing in an independent property valuation before you meet any real estate agents will put you in a strong position with the knowledge of exactly what your property is worth.
For a quote on a valuation of your property simple call our office on 1800 828 222, or click below to send us an inquiry.