ADVICE ABOUT CHOOSING A PROPERTY APPRAISER WHEN SELLING A HOUSE
The most important advice to know about property appraisers before signing a real estate agency agreement to sell a house:
1. A decision about whether to sell a house or not is often based on a property appraiser's value estimate. So the accuracy of the recommended sale price range rates high in terms of importance.
2. The difference between a property appraisal value at the outset and a sale price at the end depends on the experience and competence of a real estate agent in the market at that time. There is no one-size-fits all.
3. Ensure the accuracy of your intended sale price and use tips for selling a house to aim for more, rather than over-estimating the sale price in your advertising, which very often ends in price reductions. Decisions to be made when selling a house are many so if you need help first, ask a question.
4. Basing your house sale price on what your real estate agent recommends in the appraisal is your second most important decision. The most important decision is getting property appraisals from proven real estate agents for your property type and location.
5. A real estate appraiser is obliged under the Real Estate Agents Act 2008 to establish an accurate sale price range with which to advertise your house to sell.
6. A property appraisal is primarily based on recent and current sales data, an inspection of your house and land and the location and the current real estate and economic climate. Pricing a property is a constantly moving target that provides the basis of all your subsequent decisions about selling your house.
7. Even if you decide to advertise your house for sale without a price and choose an auction or tender, a property appraiser will still have to enter a price range into websites. This means when home buyers are searching for properties it will show up in the right price search range.
MORE ADVICE ABOUT PROPERTY APPRAISAL ACCURACY
When planning to sell a house we advise vendors to place greater emphasis on the importance of an accurate property appraisal than when the best time to sell is.
Multiple decisions that you make, most legally binding, will be based on the information that was provided in your real estate appraisal.
If an appraisal has an incorrect sale price (or price range), your whole real estate experience will be impacted upon in terms of sale price, time to sell, how its marketed and your experience.
‘Price Reduced’ marketing for example, is far from ideal.
WHAT EXACTLY IS A PROPERTY APPRAISAL?
A property appraisal is a formal document prepared by a licensed real estate agent, the appraiser, for the purposes of informing you about what you could expect in terms of a sale price in the current market.
It is provided to you at no cost (unless it’s inaccurate of course).
- An appraisal must be provided to you in writing by a licensed real estate appraiser. Verbal appraisals are not acceptable, ever.
- It must realistically reflect current real estate and economic market conditions.
- It must be supported by comparable information on sales of similar properties in similar locations.
- Where no comparable data exists, the real estate agent must explain this in the appraisal document.
- The price used to advertise your house for sale must be reflective of the price expectations agreed with you as the vendor.
- Any amendments to an advertised sale price must be approved by you in writing. Keep your eye on the ball.
THE PROPERTY APPRAISAL PROCESS IN STEPS
A professionally vetted real estate agent provides a home seller with greater confidence in getting an accurate sale price indication.
This is a free service for New Zealand home sellers.
It is recommended that you get at least two property appraisals so you can compare services and costs.
We can provide information about keeping all your real estate costs to minimum including commission and fees.
Once you have decided which real estaste agent or agents you would like to appraise your property they will visit and you can give them the guided tour. They will likely have some questions along the way.
BE UPFRONT ABOUT ANY WORK THAT MIGHT EFFECT CONDITIONS OF SALE
If there are any issues related to the integrity of the house or unconsented improvements, don't hide this because it will get found when a buyer exerts their right to have a property inspection carried out as a condition of sale. Rule of thumb - no surprises.
Property sales often fall over when meeting conditions - and just after the excitement of signing a sale and purchase agreement - because a property inspector finds issues. A total waste of all your efforts and advertising money paid.
It is always best to disclose what you know and ensure you have a real estate agent who can manage the issues competently for you. This is all very common in real estate today.
Once you have reviewed all appraisals and met with each property agent you will be able to compare them using Agent Finder's questionnaire.
Users of the questionnaire are the most informed home sellers in New Zealand.
Here's a recent Agent Finder Review:
'We are very relieved and very happy with our real estate agent, thank you for your recommendation and your help. Both of you have helped make it a relatively stress free and painless process.
The agent managed to get us a good pre auction offer so it has happened very quickly. We are all happy.
Thanks again. Nick.