Property Valuations VS Appraisal: Knowing the Difference

Your property is a big investment, so as much as possible you will want to protect your investment. To protect your investment, you must have a clear idea of how much its value has gone up or down. That way, you will be able to make the necessary upgrade or renovation to make sure that your property is competitive when you put it up for sale in the market.

To get an idea of the value of your property, you can get valuation or appraisal from an expert. Many people tend to use these terms interchangeably, but actually they are not the same. There may be a time when you will need an actual valuation and not just an appraisal. Here is a quick distinction of the two terms to help you out.

Property Appraisal

Appraisal can be considered as an educated guess. This is a good estimate of how much your property would be worth. Out trusted agents at Bunbury Real Estate can assist you should you need an appraisal of your property. Our agents have a broad and extensive knowledge of the real estate market in the area and they use this knowledge to provide a good estimate of the value of your property.

At Bunbury Real Estate, we provide you a hassle-free way of getting a good estimate of your property via our free online appraisal service. You simply need to provide a few details about your property and one of our real estate agents will make an assessment of your property. Our agent will compare your property with other similar properties in your area to give you a good idea of how much your property should be worth.

Property Valuation

Property appraisal is a good estimation of the property’s value, but there will come a time when you will need more than just an estimate. At such a time, you will need to get a property valuation. This can only be provided by a registered and licensed property valuer. Property valuation is a systematic process to come up with the actual value of the property. This needs to be done by an unbiased party and involves a complex process.

During property valuation, different factors come into play, including the location of the property, the condition of the property, features of the property, encumbrances, damages and any other factors that will affect the value of the property.

Property valuation is usually required when obtaining financing from a lender or when determining the value of the estate of a deceased individual.

In essence, the difference between appraisal and valuation is simple. Appraisal is a good, informal guide that you can use to price your property, whereas valuation is something that is legally acceptable and accurate.