What is an appraisal of real estate ?

An appraisal of real estate is an opinion of the market or sales value of a particular property.

While an opinion can be given by anyone, an appraisal of real estate is often completed by either a real estate agent who knows the area and the market who will provide normally a free appraisal.

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Or by a certified valuer who will provide a more thorough report which you will have to pay for, many times the certified valuer is enlisted by a financial institution as part of your loan approval process.

If you’re thinking of selling your property because you are retiring, relocating or downsizing or simply interested in the value of your assets, an appraisal by your local real estate agent is a great way to begin your research.

When you are looking for a real estate appraisal, you will probably come across a few different levels of service that come under this one banner.

Put simply, there are accredited and non-accredited property appraisal services and it is good to know which one you are getting (especially if you are being asked to pay for the service).

An accredited appraisal service is an independent valuation made and most often used by a bank or other lending authority when you apply for a mortgage.

A non-accredited appraisal service is usually offered by a real estate agent as a way to meet you and hopefully help you sell your property.

Market fluctuations and the effect on the appraisal of real estate ?

Markets do fluctuate and depending on today’s market, your property will either be increasing or decreasing in value.

Interestingly, even with the ‘financial crisis’ that has impacted America from (arguably) 2007 to 2009, the average property prices within Australia continued to rise.

Between1990 to 2010 property values rose by 200% across the board. So, a property that would have been valued at $140,000 in the ‘90s is now more likely to fetch $490,000 today.

According to Australian Property Monitors (a national property price information service used by banks, agents, government departments and the media), national house prices were up 7.1% in 2009 and September 2009 recorded the strongest quarterly growth since 2003.

What this means is that, should you need to sell now, there is still a chance your property may have increased in value.

In fact, economist Matthew Bell reports that “expected house price growth will be underpinned by record population growth and a significant short fall in new housing supply” and that rising interest rates are now the biggest risk to house prices.

While the financial crisis is still very much affecting some mortgagees, this creates opportunities for those who are in the market to buy.

Repossessed properties are auctioned by the bank as quickly as possible, although they’re not usually advertised so they can be hard to find. Your real estate agent may be able to advise you in this area.

So, whether you are buying or selling, seeking a real estate appraisal is an important step in the process.

Before signing on the dotted line, always you should read our consumer reviews on who are the best agents, we can give you advice how to choose the best agents to interview.

We also have compiled consumer ratings scores on real estate agents in your area, search now for the best real estate agent just click on link at top of page.