Getting an accurate property appraisal from a competent real estate agent will be your first most important decision when selling your house.
Any agent in your area can provide a free property appraisal, but the integrity of the appraisal (and the agent) is where many property sellers can be misled and sales go wrong.
There are over 15,000 real estate agents in New Zealand and many in your particular location. If you are intending to sell your house, this article will empower you to be better informed about your property appraisal and the impact it can have on your real estate experience. Be on the front foot rather than have regrets later.
Accuracy of property appraisals
Many people like to get a property appraisal to determine if it's worth selling at all. So if the sale price range is inaccurate, your whole real estate experience is compromised which can be very costly.
One of the leading reasons a property doesn't sell, is because the sale price expected is not achievable, even in the hands of a competent real estate agent, regardless of the fees and commission they charge.
This can be because vendors over-estimate their home's value (and refuse to budge on it) or the agent has provided an inaccurate appraisal price, sometimes both.
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We have found over the years that you are better to have a competent agent who appraises your property correctly and markets it to achieve more in the sale price, than one who over-prices it and then under-delivers - because with the latter, often come big price reductions.
Some real estate agents can over-estimate your property's value so you will list with them (often with undue pressure). Choose your agent carefully and use good advice to prepare yourself before you invite anyone into your home to provide a real estate appraisal.
Subsequent decisions you make and legal documents or contracts you sign will be based on the content in your property appraisal. Getting it right (or wrong) can be life changing.
It is common for home sellers to get two to three property appraisals so they can compare services, marketing, fees and commission and the sale price range being recommended in each.
Commission and fees or sale price is often what sellers base their decision on who to list with. The cheapest real estate agent might not get the best price which could far outweigh the cost of a percentage difference in agencies. It's important to consider the big picture.
It's a busy world and most of us are time-deprived. If you want to understand more about the real estate process, download the Process of Selling A House Checklist first.
A Property Appraisal & Comparative Market Analysis Are The Same
Comparative Market Analysis (CMA) - you will see this acronym - which is industry lingo - at times, but basically it's what most people call an appraisal and you get this from a licensed real estate agent.
Real estate agents are obliged under the Real Estate Agents Act 2008 to provide property appraisals in writing. Never accept a verbal appraisal.
Protect Yourself When Getting An Appraisal
Many Kiwis have had minimal experience, if any, selling a house. This creates a level of dependency on one person for advice and information, your real estate agent.
Licensed agents who achieve the highest sale prices and provide the best real estate experiences for their clients are those who work with integrity and within the Real Estate Authority (REA) Code of Conduct.
This calibre of agent will be realistic about market price and hope to achieve more with good marketing, creating buyer competition and strong negotiation skills.
To find out more about finding real estate agents, appraisals or commission and fees, get in touch to find out how it all works, it's a free service.