Appraisal or Valuation?

Possibly one of the most common sources of confusion in the property industry is the difference between appraisals and valuations.

“Aren’t they the same thing?” we hear your ask.

Appraisals are our specialty as real estate agents. They are our professional estimates of the price for your property, whether it be an estimate for sale or rent.

We use our expert knowledge of the local area, recent market evidence, condition of your home and other factors in preparing our appraisal.

Industry resources like Corelogic, REIWA and realestate.com.au are also used to compile statistics for preparation of your appraisal.

A valuation must be prepared and provided by a licensed valuer. Valuer’s have undertaken study and training in the property valuation field.

While we still undertake study and training, both initially and ongoing, as real estate agents, the training of both real estate and valuation professionals does differ.

The formal valuation, sometimes also called a bank valuation, will provide a definitive value. This is most commonly needed for obtaining a finance approval from a bank.

So what’s the difference between the two?

Valuations have legally recognised standing, where as an appraisal is recognised as a professional opinion.

So, in a nutshell, an appraisal is perfect for when you’re wanting to sell or lease your property. If you’re looking to get finance approval, or you need a legal value for your home, then a valuation is the way to go.

Still not sure which may best suit you? Get in touch and we can chat through your needs to point you in the right direction either way.