Property valuations and appraisals are important and beneficial for people looking to buy or sell a property. They are often required when buying or selling a property because they provide an indication of the value of a property on the current Brisbane market.
A Guide To Getting A Brisbane Property Valuation. When you’re in the property market it’s important to understand the differences between property valuations and property appraisals. While the common misconception is that they are the same, they actually differ in a number of ways. The primary distinction between the two is that a property valuation refers to a formal process (the findings of which are often used for legal purposes), while a property appraisal refers to an informal assessment of a property’s value (usually from a qualified real estate agent and is an opinion). Valuations incur a fee, but appraisals are usually free.
Get An Appraisal
Property valuations are only able to be conducted by a qualified person who has completed the necessary training and there are fees associated with formal property valuations. To find a local valuer, try searching for ‘Brisbane Property Valuers’ or speak to your agent at Place Property and we can arrange an independent property valuation for you.
Although property valuations are beneficial, they’re not necessarily reflective of what you can gain for your property on auction day, as they’re based on formulas, rather than market value, so do bear this in mind. After a valuation, the individual who requested it will be provided with a full report. This report should contain:
- A site description (including faults identified)
- Town planning information
- Environmental impacts
- Certificate of title
- Summary of basic utilities
- Valuer comments
- Findings and rationale of the valuation
- A market review
- Details of the valuer’s qualifications
- Comparable recent sales of similar properties
Registration requirements vary between states and territories. Queensland requires all valuers to be registered with the Valuers Registration Board of Queensland. This statutory board is responsible for managing all real estate property valuers throughout the State of Queensland, and administering the Valuers Registration Act 1992 and the Valuers Registration Regulations 2013.
In some instances, it is necessary to obtain a formal Brisbane property valuation for legal purposes. Examples of when this would be required include:
- Property Settlement
- Dispute resolution
- Asset accounting/management
- Deceased Estates / Liquidation of Assets
- Equity drawdowns
When securing lending for a property, the financial entity providing the loan will usually require a Brisbane property valuation as part of the application process. This ensures that the value of the property covers the loan, and provides the bank or lending institution with confidence that they can recover any money owed if you default on your mortgage payments.
Another time you may consider a Brisbane property valuation would be when preparing to list your property on the market, or before you make an offer on a house at auction.
Property appraisals are conducted by licensed real estate agents. There is no fee associated with this service. The agent completing the appraisal will inspect the property and use their extensive market knowledge to help you to understand the potential sale value of the property based on a wide range of factors, including:
- Location (school catchments, neighbourhood, walkability, proximity to CBD)
- The structure and condition of the property (with note of any improvements made by the homeowner)
- Presentation of the property (including fittings)
- ·Accessibility for vehicles and pedestrians
- Garages, carports, or off-street parking
- Special features
- Local council zoning
- Caveats over the property
- Any applicable planning restrictions
- A comparative market analysis of other similar properties sold
Property appraisals are essentially a professional opinion, but – when you’re working with an exemplary real estate agent – their opinion will be based on expertise and experience. While Brisbane property valuers are restricted to a more limited algorithm of tangible valuation variables, agents are able to use their market insights and understanding of the wants and needs of buyers to help you to understand the true value of your property.
On the one hand, a formal valuation provides you with a baseline value of your property in situations where this may be legally required. On the other hand, an appraisal from a dedicated Place real estate agent gives you a true understanding of how much your property is really worth to a buyer – and it’s entirely free!
In order to find out how much your property is worth, there are a number of ways to source an estimation. As mentioned above, you can get a formal Brisbane property valuation, an appraisal from a professional real estate agent, or even use an online tool.
There’s no shortage of sites offering property estimations, but the two most commonly used platforms are Australian Property Monitors/PriceFinder (Domain Group) and CoreLogic/RP Data, both of which require a subscription.
Online property estimations are calculated based on an automated valuation model (AVM), which pulls data from various public domains. The calculation is based on factors such as: property features, recent comparable sales in the area, past sales of the same property, land size, and number of bedrooms.
However, statistical models are not capable of physically inspecting your property, which means that they aren’t able to assess the specific nuances of your home. They should, therefore, be treated more as rudimentary guides, and not necessarily inform your selling or buying decisions.
Understanding Brisbane Property Valuation
Property markets can be subject to rapid change, and sometimes it can be hard for homeowners and homebuyers to know where they stand. While markets are hard to accurately predict, there are just some of the key factors that play a huge role in dictating the overall property values in Brisbane all-year-round:
- Location: A good location is always desirable to a prospective buyer. Of course, what makes a given location desirable to a person can vary depending on a range of variables (such as age or lifestyle needs) but certain locations and suburbs can appeal to a huge margin of buyers. For example, properties that are near to good schools, close to the city centre, or located on the waterfront are generally quite highly coveted.
- Supply and Demand: If the demand for property is greater than the supply available, property prices will increase due to greater competition amongst buyers.
- Interest Rates: When the Reserve Bank of Australia introduces a change in policy it can have an effect on the value of property. A cut in interest rates, for example, makes mortgages more affordable, and has an inverse effect on property prices.
- Renovation Potential: A property with the room to grow can increase in resale value because it appeals to homebuyers and investors who see the potential to personalise, expand, or improve the property.
- Demographics: The demographic of people living in a particular area can influence the value of particular properties in that area. For example, in a suburb that is largely populated by retirees or elderly people, one-storey units might become more sought after than large houses.
- Size and Facilities: It stands to reason that a multi-bedroom house will be worth more than a one bedroom flat on the same street. Desirable facilities such as swimming pools, secure garages, and ensuite bathrooms can also inflate the value of a property.
Start With A Place Property Appraisal
Sourcing a Brisbane house valuation with a qualified valuer will cost you money and only give you insight into the market value of your property for legal purposes such as equity, insurance, or lending. If you’re wanting to gauge the potential sale price of your property within the current market, then why not start with a property appraisal from a dedicated, hands-on real estate agent who lives and breathes your local market? Talk to Place Property today about getting a free property appraisal.
Why Choose Place Property For Your House Appraisal?
When seeking a property appraisal from a Brisbane real estate agent, we recommend being wary of overzealous agents who might misrepresent the potential sale value of your property. Real estate agents know that when a person is looking to sell their valuable property asset, they want it to go for as much money as it possibly can. However, some agents may attempt to win your business by telling you that your home can sell for far more than it’s actually worth during a property appraisal. Naturally, people tend to favour the answer that means more money for them, but overestimating the value of the property can negatively impact your likelihood of selling it. At Place Property, we provide you with an honest appraisal based on our intimate knowledge of the local market and the realistic potential price for your property. As specialist auctioneers, we are in a unique position to create the market conditions to maximise your sale price. As passionate and highly reputable agents, we are dedicated to establishing and maintaining great relationships with prospective buyers, which helps us to connect our unique ‘buyers list’ with your property, so we can find the right buyers at the right time. We take the time to understand what buyers want and need in a property, and we use that information to help sellers put their best foot forward in the property market. What this means for you is that unlike indicative algorithms or formal Brisbane property valuations that are restricted to tangible factors, appraisals conducted by the team at Place Property are based on what buyers are willing to pay for your property come auction day.