Do I need a property valuation or a real estate appraisal?
Valuations are sometimes disputed on the grounds that a real estate agent has provided an appraisal which is higher than the valuation figure. Real estate agents are aiming to get the best price they can for their client (the seller). This is their job. Their appraisal often represents what they hope to achieve for the property if the right buyer comes along at the right time.
A property valuation should not be confused with an appraisal carried out by a real estate agent. A valuation report, conducted by a registered valuer, is an official legal document. Unlike a valuer, a real estate agent cannot be required to defend their appraisal of a property’s value in a court of law.
If the real estate agent is adamant that the property is worth more, ask them to provide comparable sales evidence to the valuer, with their explanation as to why those properties prove the higher value for your property. Sales agents are seeing new contracts being drawn up every day and have their finger on the pulse of a changing market. While ‘sales not yet settled’, cannot be utilised in the valuer’s report (due to industry requirements), they may provide information to assist the valuer in evaluating the relevant sales evidence. Property valuation is based on comparative sales, often in a changing market.
A sworn valuation is recommended for calculating Stamp Duty for the Office of State Revenue or Capital Gains Tax for the ATO.Share