Property Valuation vs Appraisal. What is the difference?
What is the difference between a Valuation and an Appraisal?
When you are looking to sell your property, obtain a formal valuation, or to simply get a feel for what your property is worth in the current market, you are likely to come across two terms – Valuation and Appraisal. While both are similar there is a fundamental difference between the two.
A formal property valuation determines the actual value of the property. This can be used for family law circumstances, valuations for mortgage security, taxation and accountancy purposes or if you are looking to renovate and want to ensure that you don’t over capitalise. This must be completed by a trained and accredited property valuer and the report is a legally valid document that provides the actual value of the property.
A market appraisal has no legal value and can be completed by a licensed real estate agent. This is only an informal estimation of the price of the property and is generally based on the agent’s knowledge of the local market and recent sales data. Appraisals will enable you as sellers to get a feeling of the market but beware of over inflation tactics to get you excited about the price of your property to obtain your listing.
As agents we offer property appraisals based on the current market conditions, the property attributes, proven suburb sales records but the prices we indicate in appraisals are not decisive and are prepared free of charge. The market will decide where your property sits on price, and at the end of the day it is only worth what someone is prepared to pay for it. Both emotion and sales data will influence this process from potential buyers.
R&W Noosa have a proven sales record in the area and holiday manage assets for multiple owners. R&W Noosa have multiple agents who are familiar with the local area we work as a team to discuss the property and give an insight into the exact market conditions.
If you are unsure on which way to go, contact us for a free property appraisal and we can recommend if you may need a formal valuation as well.
Phone 07 5447 4499
Or contact one of our reputable Noosa Real Estate agents for an appraisal today.
23 Hastings Street, Noosa Heads QLD