How a comprehensive property appraisal makes sure you’re not undersold
December 19, 2023
You’ve probably seen real estate agents advertise property appraisals as part of their service. But as the buyer it helps you to understand exactly what’s involved.
So let’s take a look at how a Sherlock Homes property appraisal works, and how we can use it to help you get a better price when you sell your property.
So, what is a property appraisal?
A property appraisal is a professional assessment of the value of your property conducted by a qualified appraiser. In this case, the Sherlock Homes team.
Our property appraisal process involves examining and analysis the various elements that contribute to your property’s current and potential value. This includes things like size, location, condition, amenities, and recent sales data of comparable properties in the area.
The goal of your property appraisal is to determine the fair market value for your property, that is, the estimated price it would likely sell for in the current real estate market. But we go that extra step further, and give you our professional opinion of what you could earn if you made some changes around the house.
Here’s what we look at in more detail.
The location of your property plays a huge part in its value. So in your property appraisal, we evaluate a number of different factors that are involved. This includes things like:
- How close it is to the city
- Its proximity to schools, shopping centres, and public transport routes
- The desirability of the neighbourhood
- Any future development plans in the area.
A prime location can significantly impact the value of your property.
Property size and layout
Our experienced agents carefully analyse the size and layout of your property during our appraisal. We assess the number of bedrooms, bathrooms, living spaces, and any additional rooms or features that might enhance its appeal.
Interestingly, it’s not all about the number of rooms your property has. This doesn’t necessarily mean a higher value. It’s all about the sum of its parts: the size, usability, and how your property compares with similar properties in the area. A well-designed layout and efficient use of space can positively influence its value.
Access is a big one. From how easy it is to get to the front door, and car access, to where your utilities are located. Here, we can identify any issues, such as accessibility issues for the elderly, and where you can make improvements to make it more accessible.
The condition of your property is a crucial consideration during our appraisals. Our agents inspect your property for any visible signs of wear and tear, and make note of any current and potential issues that raise red flags for a potential buyer. We also make note of areas for improvement, whether it’s new skirting boards here, a coat of paint there, added lighting, or a complete room renovation.
Unique features and upgrades
Properties with standout features and upgrades often command higher values. So our agents take note of any unique selling points, such as a swimming pool, a renovated kitchen, solar panels, or high-quality finishes. These enhancements can make a good property into a great one, giving it enough differentiation that increases its appeal to potential buyers.
Comparable sales and market trends
Our agents analyse all the recent sales data of similar properties in your local market. We take into account factors such as the sale price, size, condition, location, and time the property spent on the market. This comparative analysis provides insights into current market trends, buyer demand, and the potential value of the property, and helps us determine what price you can expect to get.
Local market demand and supply
Understanding market dynamics is critical for accurate appraisals. Our agents assess the supply and demand for properties in your local area, considering factors like buyer preferences, market saturation, and recent sales activity. This analysis helps us to gauge the potential interest and competition for the property.
Economic factors and interest rates
Economic conditions and interest rate trends play a huge part in what you can expect to get for your property. So our agents consider how factors like population growth, immigration, employment rates, inflation, and lending conditions may impact the property market. Economic stability and favourable interest rates can contribute to increased property values—and unfortunately, the inverse is also true.
Future growth potential
But it’s not all doom and gloom—regardless of the market, there’s always a silver lining. Our agents evaluate your property’s potential for future growth, and that the potential for development in the area surrounding your property. We research upcoming infrastructure projects, zoning changes, or planned commercial developments that could positively impact property values over time.
When should I get a property appraisal?
Property appraisals help you understand the real potential value of your property. But they also give you an idea of what you could achieve with a few upgrades. So a property appraisal is a crucial step when looking to sell your property, or when you’re thinking about buying a new one.
- Selling. When selling, it helps you gain a clear picture of the price you can expect to sell your property for.
- Buying. When buying, it gives you confidence that you’re getting your new home for a fair price—it can even come in useful as a negotiating measure.
- Refinancing. It’s even useful when refinancing, as it allows you to assess the collateral value of your property, and enables your lender to identify the maximum value of your loan based on the market’s value.
How to get a property appraisal with Sherlock Homes Group
Getting a property appraisal is easy. Simply get in touch with us and book in a property inspection.
We’ll then visit your property and undertake a thorough assessment of everything we discussed above. We take this information away and perform a complete market analysis, and combine this information to help you understand the true value of your property.
If we identify where you could make improvements, we can then have a chat with you about what our expert property preparation services can help you achieve.
For us, it’s all about taking a personal approach, understanding your needs, and then helping you create a competitors buyer’s environment that gets you the best price.
Ready to get started? Get in touch with us to book a complimentary property appraisal today.
Please note that the information provided in this blog is intended for general informational purposes only, and shouldn’t be construed as professional advice. It also may have changed between now and its time of publication, so we can’t guarantee its accuracy or completeness. As such, this means that we aren’t liable for any loss or damages arising from the use of the information provided in this post.