5 Essentials for an Accurate Property Appraisal

December 3, 2023

A common risk when searching for property is not doing adequate or the right research. Buying property is an emotional process, and without the right guidance and support, it's easy to get distracted by the big picture and make silly mistakes. 

Some buyers rush in and waste money on solicitors and pest inspections without understanding the true value of the property they’ve fallen in love with. We're only human, after all, and external pressures such as the sudden need for an extra bedroom for a new baby, an interstate move for work, or to get the kids into the right school catchment can all affect our judgment.

As we saw in our recent posts on buying holiday homes and buying as a single person, there are many factors to consider when you buy property. But ultimately, what increases your chances of success most is the quality of your research.

Good research is key to securing your property at the right price

“When it comes to determining value for the purposes of purchase, all factors need to be studied. More than that, their analysis requires a keen, experienced eye. Understanding what price a property will realistically sell puts you well ahead when acquiring a property that meets your needs,” confirms Scott Aggett, founder of Hello Haus.

“Analysis requires a keen, experienced eye”

Many different factors drive the sales price of a property, but experts, like our wonderful team at Listing Loop, understand their members' needs, the market, and the position of properties in it.

So how do you go about appraising a property? 

If only making the right offer was as simple as comparing a property to the other sold properties in the area. However, albeit comparable sales are an important element of the buying process, we believe that there are FIVE essential considerations for an accurate property appraisal:

  1. Objectivity – Buying a property is an emotional purchase - and I know this personally because I fell so hard for our first property, I forgot to check it had a laundry! Often, we find ourselves under pressure to buy because of circumstances beyond our control, and passion and stress may blind us to the aspects of the property we prefer not to see or incite us to exceed our budget. Without objectivity, it's easy to underestimate or overvalue a property’s appeal, or to ignore factors that will help increase the property’s value in the long term. None of us know what the future holds so taking a long-term view of the value of your property is crucial, which leads us to, perhaps, the most essential consideration of the buying process.
  2. Your team – In recent times, the value of experience and expertise has been downplayed by social media. We have been led to believe that a five-minute YouTube video can teach us how to do pretty much anything – and trust me, no video could teach a technophobe like me how to build a functioning website. So why, when you invest in what is for many homeowners a lifelong commitment and their largest household expense, would you compromise on support? Why wouldn't you consult with a knowledgeable, experienced team that understands the inner workings of the market, the pros and cons of your chosen location, seller psychology and agent speak.
Accurate property appraisal
An accurate property appraisal ensures fair pricing, aids in securing financing, informs insurance coverage, impacts taxation and guides sound investment.
  1. Comparable Sales – It makes perfect sense to check out the recent sales in the area or suburb in which you hope to buy but use the data in conjunction with other important metrics. For example, a comparable property may be in the same street and have the same floor plan, but are you really comparing apples with apples? It is impossible to gauge a property's true condition and finish without inspecting it first, and if it requires a larger slice of your budget for updates that meet your living requirements, you must take that extra cost into account. Searching for property is not necessarily a quick process, so keep up-to-date with any recent sales because property prices fluctuate regularly.
  2. Other evidential data – Other metrics you should consider include days on market, buyer depth, listing numbers and auction clearance rates in specific markets. Would you consider, for example, checking out the crime rates or school rankings in your chosen area? Why is this data important? Because it may affect the amount of stock on the market and it will certainly affect the price your property sells for.
  3. Current Buyer Sentiment – This is where the expertise of an experienced advisor really pays dividends and Scott gives a great example of how this works. “By using experience and knowledge, you can make a quantitative judgement call on how the market will react to a property, and what that means for price,' he says. 'Advisory services like Hello Haus' can determine a true sale price without being hamstrung by lender guidelines. We can weigh up market sentiment and set our estimates on what’s occurring on any given day.” The analogy he offers to support this consideration is that if a property may sell for $500,000 one week – in a market with a wide range of stock – but it is likely to trade higher in a market with less stock and less competition.

As Australia’s leading marketplace for off-market property, we’re here to help!

It's not impossible to get an accurate property appraisal, but you will need some support and as Australia’s leading marketplace for property buyers seeking to uncover off-market and pre-market properties, Listing Loop is happy to offer that assistance. 

And did we mention that a lot of our support is FREE to our members? 

At Listing Loop, we give our members a one-stop-shopping solution that offers them every service and tool they need to buy 

With over 20% of Australian properties sold off-market, our exclusive one-stop-shopping solution ensures our members a quick, economical, stress-free transaction. With access to a range of services and tools that include home loansexpert property buying support, conveyancing, utility connections and specialised property financing solutions, we give them all the services and tools they need to buy.

So what are you waiting for? Get in the loop TODAY! 


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