Consulting real estate experts for accurate market appraisals

Is it a selling agent? Buyers' agent? Licenced valuer? Architect, builder, interior designer?

There are so many people with impressive qualifications in the property market that it can be difficult knowing exactly who to turn to when you want to get a realistic idea of what your home is worth.

Let's consider a few options so you can decide what best meets your purposes when it comes to getting a property or market appraisal for your home or investment and how you might engage with them to ensure a good outcome.

Real estate experts to turn to for an accurate property appraisal

Option #1: Real estate agent

Knowledgeable selling agents can give a pretty good ballpark figure of what your home might be worth on the market. Their process tends to involve the agent evaluating a few key factors, including:

• The property's location

• Its condition

• Recent comparable sales in the area

• Current market trends

Many selling agents offer free market appraisals as a way to get better acquainted with the property owners and stock in their local selling areas.

The key is to find an experienced agent who specialises in your particular locale. That way, they'll have more than just a list of recent sales data to go by. They should also be able to draw from their own market intel on the current level of buyer interest, average selling times for similar homes, and offers other sellers in the area have been getting.

It's wise to get appraisals from two or three real estate agents though and average their figures so you get a more well-rounded indication.

You'll also need to bear in mind that selling agents may not always be providing completely objective appraisals. Some agents may consider your request as linked to you putting your property on the market, and they may skew the appraisal to give themselves the best chance of winning your business. That might be particularly the case if they're aware you're asking other agents too.

There's even a name for this practice in the industry - 'buying the listing'.

Option #2: Buyers' agent

An alternative professional to consult is a buyers' agent. Buyers' agents can prove a valuable resource that not too many people think of.

A buyers' agent has no immediate interest in listing your property but will likely have a good knowledge of the area and the market.

Buyers' agents deal with motivated buyers every day, so they'll be able to tell you exactly what potential purchasers in your area are looking for and can give you general advice on how to boost your property's value.

If you've already received an appraisal from a selling agent, it may be wise to get one from the other side of the fence too.

Best of all, if you're planning to sell, a buyer's agent is tapped into a ready supply of qualified buyers and may be able to link you up with a motivated purchaser.

See also: Should you hire a buyers' agent?

Option #3: Licenced valuer

Of course, an official property valuation is generally the best way to get a realistic independent appraisal of your property's value. Although, you might be surprised how low the figure comes in compared to agents' appraisals.

There is considerable difference between a formal valuation and an appraisal.

A valuation is conducted by a qualified valuer and will generally take much longer and be more far more strident than a real estate appraisal. Property valuations are also not free. They typically cost a few hundred dollars.

Valuations are generally carried out for official purposes, such as when a lender or court needs to rely on a definitive figure for legal or financial purposes.

Valuers tend to be more conservative in their values than agents, but that's because property values for official purposes can be different to the price a seller could get on the market.

See also: Bank valuations vs market value: what's the difference?

If you're after a rough guide of your property value, a free agent appraisal can give you some idea. If you need a valuation for official purposes, you are obliged to engage a qualified and licensed valuer.

Option #4: Architect, builder, or interior designer

While these other industry experts may not be across the everyday movements of your particular market, they can offer some clever insight into things you could do to increase your property's value for a better sale price.

For instance, many interior designers, for about $500 - $1000, spend a half-day inspecting your home and drawing up plans and advice on increasing your property's appeal. A builder or architect may be able to make similar structural suggestions to boost your home's value.

The trick then is to measure the outlay against the potential gains and weigh up whether their suggestions will be worth the investment.

See also: Which improvements increase home value?

Curious about your equity?

Some homeowners may be keen to get an accurate picture of their property's value because they're thinking about borrowing against the equity in their home to free up cash for other purposes, or perhaps to purchase an investment property.

See also: Guide to Buying your Second Property

If you're interested to buying an investment property, the table below features some of the lowest interest rates on the market for investors.

Important Information and Comparison Rate Warning

Image by Phil Hearing on Unsplash