How does a Valuation differ from a Market Appraisal?
Generally, an appraisal is prepared by a reputable and experienced estate agent who is the member of the PSRA (Property Services Regulatory Authority) and is used as a guide to pricing a property for sale or for rent, and a valuation is conducted 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, developers looking for property values when constructed, marriage splits / martial law or disputes with business properties. A Valuation is the formal and legal 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. At Midlands Real Estate we offer this as a free service. Click here to request yours. Our grade A Valuation service is a written report prepared on the property and a fee is charged for this service.
Click here to request a comprehensive valuation.
How is an appraisal determined?
Market prices are dynamic and subject to fluctuations, underscoring the importance of comparing a property with similar ones in the same vicinity that have transacted within the past 3 to 6 months. While no two properties are identical, an appraisal remains inherently subjective, representing an opinion based on the available data at the time.
Estate agents, equipped with a comprehensive understanding of recent property transactions, are well-positioned to provide an estimate of a potential selling price. This estimation is derived from a comparison with recent comparable sales, leveraging their knowledge and insights in the ever-evolving real estate landscape.
What is a Property Valuation?
Distinguishing itself from an Appraisal, a Property Valuation establishes the genuine value of a property through an independent and unbiased perspective, offering a reliable standpoint, particularly from a legal standpoint. A property valuation is conducted by a member of the Property Services Regulatory Authority, and the valuer may be a member of IPAV (Institute of Professional Auctioneers & Valuers) or SCSI (Society of Chartered Surveyors Ireland).
When you apply for a mortgage, a qualified valuer is engauged to carry out a formal valuation on the property. The valuer must be suitably qualified, and it is usual for mortgage lenders to insist that valuations be undertaken by a Registered Valuer.
Various Registered Valuers may offer divergent opinions of value. Throughout the years, the courts have frequently been tasked with determining the accuracy of a valuation. Their consensus is that, as long as the valuation adheres to best practices outlined in the industry standards, an opinion of value cannot be deemed ‘incorrect’ as long as it falls within reasonable tolerances of the court’s own assessment of value. The specific tolerance level varies based on circumstances, sometimes reaching up to 17%, but typically remaining within the range of 10%.
Thinking of selling? What happens when a Market Appraisal is being conducted?
During the Appraisal process, an agent conducts a thorough walk through of the property, akin to a prospective buyer’s viewing. Inside, they observe the size, number, and type of rooms, along with noting the condition, age, BER energy rating and quality of fittings and fixtures. Outside, factors such as the garden’s size and orientation, parking facilities, garage, and other features are also assessed.
Following the property inspection, an estate agent will engage in a discussion with you, addressing various aspects of your property. They will offer guidance on recommended actions, including tasks like decluttering, cleaning, painting, installing new carpets, tidying the garden, and addressing minor repairs, before listing the property on the market.
The agent will furnish you with information on recent sales and prevailing property prices in your area. Providing an estimate of what your property could achieve upon sale, they will also present a sales proposal outlining how they intend to handle the sale on your behalf.
At this point it’s essential to ask questions about both the sales processes and what the agent has to offer you as part of their sales package. Also, a well-informed understanding of the procedures is crucial for making informed decisions. When choosing an agent, prioritize the one who genuinely has your best interests at heart and with whom you feel most comfortable—not necessarily the one who provides the highest valuation.
At Midlands Real Estate we offer a bespoke sales service that encompasses:
- Comprehensive marketing strategy.
- Immersive 3D and 2D floor plans.
- Professional photography.
- 360-degree virtual tour allowing your home to be viewed anywhere, anytime.
- 24/7 live bidding platform enabling you to stay connected with bids wherever you are.
- Sales boards installed on site.
- Video marketing.
- On request we can work with local and national papers to showcase your property.
- Property staging
- Property cleaning and painting to maximise its value.
If your thinking of selling, click the below link and request a call back. At Midlands Real Estate we are here to offer our clients a level of service that cannot be matched.
Im thinking of selling, click here.
In conclusion, a property valuation differs greatly from a Market Appraisal. By understanding the valuation and sales procedures, you are better equipped to make informed decisions and navigate the property selling process successfully.
