Generally an appraisal is prepared by a reputable and experienced real estate agent who is the member of the REIV (Real Estate Industry of Victoria Association) and is used as a guide to pricing a property for sale or for rent, and a valuation is conducted in Victorian by a Registered / Sworn Valuer with a comprehensive criteria of the property itself. This is a legal document that would stand up in court and is often used for deceased estates, marriage splits / martial law or disputes with business properties. The Sworn Valuation is the formal and scientific way to find out the value of your property.
An appraisal is simply an estimate or an opinion of a property’s current market worth, considering what the market is responding to and other factors. This is usually offered as a free service by real estate agencies.
Valuation is a written report prepared on the property and a fee is charged for this service.
How is an appraisal determined?
Market prices can vary and change over time so it is necessary to compare the property with similar properties in the same location that have sold in the previous 3 to 6 months. Obviously no two properties are identical so an appraisal is only subjective and an opinion based on data available at the time.
Real estate agents should have a good knowledge of recent property transactions and therefore should be in a good position to give an estimate of a likely selling price by comparing recent comparable sales.
Barlows offers free market appraisals for both sale and rental of properties.
If you are interested in obtaining a free property appraisal call our office on Angus or Theo on 9391 1888
Property Valuation
A Property Valuation is different from an Appraisal in that it determines the actual value of a property from an independent and unbiased point of view, and can be relied upon from a legal perspective. In Victoria a valuation is carried out by a Registered Valuer and a concise, written report is prepared and a fee is charged for this service.
Why would you need a Sworn Valuation instead of an appraisal?
Valuations are ordered when a definitive value is required for a specific purpose – examples are: a property settlement; dispute resolution; financing a property purchase (or refinancing); deceased estate settlements etc.
A valuer will take many factors into consideration when working out the value of a property, including type, physical location, size, building structure and condition, access, planning restrictions, zoning, and caveats or encumbrances. Unlike the real estate appraisal, they do not take factors such as style or street appeal into account. They also don’t compare your home against similar properties currently on the market.
All of this information is combined with recent comparable sales data to arrive at a property value.
For more information about Melbourne Property Prices and increasing the value of a property call us for a no obligation consultation.
If you would like to know more about our Appraisal or Sworn Valuation Service please contact our office and ask for Angus or Theo on 9391 1888
Other useful links: www.bmtvaluers.com.au our Sworn Valuer