Hello everyone,
We are in the process of placing our house on the market. After gaining two opinions from seperate real estate agents, we were told our house would fetch around 500k.
We decided to get a private valuation done before listing just for peace of mind. We were somewhat surprised that it was valued at only 450k.
Our house is more of an executive style home and there has been few if any similar to ours for sale in the past 2 years in our area.
We would love some advice on why there is a discrepency in values and if the private evaluation can sometimes not reflect what a property may realistically fetch.Regards……
As a seller, both valuations mean nothing. It is worth what the person with the fatest wallet is willing to give you. The REA is giving you a figure which will entist you to want you to list the property. If they said it was worth $400k, would you still list? The private valuer, who normally works for banks will give a more conservative value. As you said there have been very few similar to yours recently, if it went to auction you may have two buyers who think it is the perferct property for them and fight over it pushing the price over $500.
When it comes to what price you want to list the property that is a different story (not always what it value is) but more selling tactics and your goals. If you need to get out fast, list it at a lower price to attract more attention and then asses the offers you receive from those going through (some may be higher then the listing). If you are in no rush to get out and want to get maximum money, list it at the higher end.
cheers for the advice gibbo
Valuers rarely work for banks, they contract their services to banks, institutional property owners, investors and any other party who has or wants an interest in property.
They are not conservative – they research the market, including considering the sustainability of trends in order to determine what a reasonable person would pay to a reasonable seller on the given day. Historic valuations are easier as all of the information regarding trends and sales data are existing. Current market vals are trickier as they require the valuer's assessment of market movements.
A valuer carriers professional indemnity insurance – ie they can be sued for an incorrect assessment of the market.
Valuers are extremely objective in their analysis of sales data, ruling out those sales which may have been compromised.
REA's on the other hand, will only refer to their own office's recent sales to support their market appraisal ie very subjective.
They are not qualified or licensed to provide valuations (unless they have the appropriate licence from dept of Fair Trading).
REA's use their appraisal as their marketing tool, a favourable appraisal backed up by strong sales evidence may sway a vendor to use their services.
1.
What do you think the "true value" is relative to your street and the surrounding streets.2.
What does it compare to in the same suburb.3.
Is it with in walking to bus, train, shops, schools etc4.
Get an RPData report of recent sales.5.
Get the opinion of 5 realestate agents.6.
Get an independent "buyers agent report" LREA but is working for you.7.
What are the appealing factors and who is your target market, mums and dads or professionals.8.
Don't sell the house sell the dream it's worth more.9.
A good marketing agent will achieve the "best" price and the best price is achieved buy the person who produces the best information.10.
Does the property present to it's true value or what can be done to help this with out spending any money.11.
Does it have a water feature, garden lights, eve lights, spectacular trees etc …Good book out now 151 handy hints to add value to your home or investment property by Philip Sigglekow.
D
Based on experience, valuer usually give a better indication of the "true" value of the property,.
Agent usually is the more optimistic one, and more likely value at higher price range, simply to convince you to list the property with them. This is why sometimes we ends up with "unrealistic vendor asking price" because the vendor believe they can achieve that value in the market as indicated by the agent.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
