There are three main options available to establish how much your home or investment property is worth.
The valuation method you use will likely be determined by the reason you are seeking the information for. For example, if you are selling a property, refinancing, insuring or maybe just curious to know what your nest egg is worth.
SELLING UP OR STAYING PUT
1) APPRAISAL - A real estate agent's comparative market analysis (CMA) also referred to as a property appraisal for the purposes of selling. This is provided free when selling your house.
However, regardless of the appraisal value, leave no stone unturned that might help add value to your house sale price. For example there ways that help to sell your house for more by helping your agent to attract multiple offers.
2) VALUATION - A full valuation by a registered valuer who visits and inspects your house and land to determine what it is worth by taking everything into account such as chattels, improvements made or quality of the grounds.
3) ALGORITHM - On line algorithm software programme that uses combination data to establish a home's value. The least reliable way in our view, of establishing a value for the purpose of establishing a sale price if you are intending to sell your house or insuring. Valuation algorithms for the same property have been known to differ by over a hundred thousand dollars.
The most sound advice when pricing your house to sell will get you on the right path.
Watch for misleading valuation services
When searching for on line 'property value' information or services to establish what your home is worth, you may find yourself arrive at a one-page website with a pop up box seeking your contact details and property address so you can be contacted about your inquiry.
We have seen this approach coming from real estate agents disguising themselves as a valuation service and offering a free property valuation. This is not the same as having appraisal information on their website as part of their professional service, it is more deceitful
Word of warning is that you need to be clear about what you are actually wanting because the qualifications of licensed valuers and licensed real estate agents are very different and so too, will their processes used to determine how much your home is worth.
The best way to establish authenticity is whether you can find information about property valuations or an 'about us' on their website. If not, then it's likely to be a real estate agent. If you can't see a website to click from their contact with you, it is unlikely going to provide what you are looking for.
There are five areas of a property that add the most value to a home so take a look at these first to see how you can influence your sale price, even before you invite a registered valuer to your home. Best to impress them as much as possible too.
If you want an actual real estate appraisal, make sure you use the right agent to do this.
If you need help finding a vetted agent, Agent Finder NZ is a free and independent service that vets real estate appraisers nationwide.
Rule of thumb for quality of valuation website
Another way to establish the authenticity of a valuation website, is to click on the Contact or About Us pages on that site.
You should be able to determine the authenticity of the site from these pages.
Many 'About Us' pages will have a person (or persons) behind the scenes which describes what makes them experts in their field. If there is no 'About Us' type pages, be warned.
This is a good rule of thumb for evaluating the credibility of any website in our view.
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- Where to start when selling a house
- What to check before signing a listing authority
- Legal advice including free online advice
Article updated July 1 2020 | About