A new year means a fresh start, even if you don’t believe in making resolutions.
Now is a great time to rethink your property needs and make that move you’ve been thinking about for a while. But don’t jump in before knowing how much your property is worth. Here’s why you should get a market appraisal, how it differs from a property valuation and what you can expect from the Potts Point property market now.
What is a market appraisal and how is it different to a valuation?
A lot of vendors get confused between market appraisals and valuations, which doesn’t come as surprise to me. Both processes are ways of determining what your property is worth, but there are some very important differences you should know when choosing the right one for your situation.
A market appraisal is when a real estate agent comes to your property and evaluates it based on their experience of the local market. The agent will tell you how much they think you could sell your property for, using the factors below to make their judgement:
- The property’s size, features and location
- The sold price of similar properties that have recently been on the market in your
- Demand, average days on market and auction clearance rates in your area
- Trends in the property market overall
Market appraisals are free, so a lot of vendors choose to get them from a few different agents for comparison. These figures can be quite similar, or they can vary greatly, so it’s important not to be swayed by the appeal of the highest appraisal. Consider all of the price guides seriously but focus on proceeding with an agent you can trust to tell it to you straight.
On the other hand, valuations are legally binding reports that cost money. They’re formal reports written by independent valuers who have been professionally trained. Unlike market appraisals, which look at how a property might sell in the future, valuations look back on past sales to determine a figure. For this reason, they’re often more conservative, which is a much safer option for the banks and lenders that use them.
Why should you get a free market appraisal?
A market appraisal is a free, non-committal way to find out where you stand when thinking about selling your home. There’s no pressure to go through with the sale, but it gives you a really clear idea of where your property sits in the current local market, so it’s always worth doing if you’re entertaining the idea of selling up.
Appraisals are also great ways to get to know some agents before making a choice about who to work with. What’s their knowledge really like? How well did you get along with them? Do they have your best interests at heart? Did they give you a realistic price and an explanation for the number they gave? How would they take it to market and what advertising would they recommend? These things will all help you find the right professional to work with if and when you do choose to put your home on the market.
You can also take the opportunity to tap into your agents’ local expertise to improve your chances of a great sale. Appraisals are based on local sales and trends, so who better than a local agent to advise on how your home might sell? Their intel on what buyers are looking for in your suburb can help guide your pre-sale renovations, while their detailed understanding of local changes or new developments mean they know all the factors that could influence your sale.
What’s the market looking like in Potts Point now?
An appraisal will give you tailored information on a possible sale price for your home, but it also helps to look into overall trends and stats to understand the market you’ll be selling in.
So what’s happening now in Potts Point? While the market is cooling a bit along with the rest of Australia, Potts Point is holding firm at the higher end of the market, so those selling premium homes can still expect very good prices. The slowing market also represents a good opportunity to upsize for those looking for a new year move – the gap between your current home and new home could be smaller than before, so it’s easier to make the leap.
The median price for a unit in Potts Point is currently $648,500, which is a 20.1% increase from five years ago. If you bought your home in the last five or 10 years, now’s the time to get an appraisal to see how much you could sell for in 2019.
Thinking of a new home for the new year?
Get in touch today to arrange your free market appraisal.