What’s The Value Of A Property Appraisal?
Why is a property appraisal important?
Most home-owners believe a property appraisal is the best way to establish the market value of a property. Whilst real estate salespeople have access to historic sales data that could help determine what the property would sell for, their view is also based on their own general market knowledge.
Real estate salespeople are not registered valuers so their price expectation should be treated with some caution. Ultimately, the market will determine what is paid for a property, tempered by the marketing and negotiation ability of the salespeople involved.
The whole appraisal process is, however, a useful exercise for home-owners to establish market intelligence. The process also provides time to engage with the salesperson and determine a trustworthy relationship “fit”.
How Tall Poppy creates a property appraisal
We create an appraisal price by pulling statistics on comparable current listings and recent sales from a variety of trusted industry sources. We aggregate this information along with our market knowledge and any other variables or market factors that may be applicable.
The statistics are available to all Real Estate companies and so theoretically that should make each appraisal similar, regardless of the Real Estate company that delivers the appraisal. This is however rarely the case and demonstrates why you can’t really rely on an ‘appraisal’ as an accurate price guide. A registered valuation is another guide to consider but it won’t claim to predict what the market will pay.
Why you can trust a Tall Poppy property appraisal
It is common practice for some salespeople to ‘buy the listing’ by presenting the home seller with an unrealistic appraisal value or by dodging the issue and advocating Auction or Tender. Once they have the listing, and during the sale process, the salesperson may set about conditioning the seller to a lower price expectation. Unfortunately, this often results in the property selling for a lower value than if a realistic market price were advertised to begin with.
To their ultimate penalty, some home-owners choose a Real Estate salesperson based on the highest appraisal price instead of selecting one who is most likely to deliver the best sales strategy at the best fee.