Why Bank Valuations and Market Appraisals Differ.

When it comes to determining the value of a property, there are two primary methods: a bank valuation and a market appraisal by a real estate agent. While both approaches aim to estimate the fair market value of a property, there are fundamental differences between them. In this blog post, we'll explore those differences and why market appraisals by a real estate agent provide you a true value in the current market.

Why a real estate market appraisal?

If you are looking to sell your property, seeking a market appraisal from a licensed real estate agent is the key tool in determining a realistic asking price. This is because real estate agents have access to the latest market data and trends, as well as local knowledge and expertise, which can help them provide a more accurate estimate of a property's value.

Bank valuation vs market appraisal?

While a bank valuation is a useful tool for lenders to ensure that they are not taking on too much risk, it may not always reflect the true value of a property in the current market. This is because bank valuations tend to be more conservative and may not consider the latest market trends or local factors that can impact a property's value.

In contrast, a market appraisal from a real estate agent is specifically designed to provide an estimate of a property's market value. Market appraisals take into consideration three main features

Comparative sales and data as required by regulatory bodies.

Current buyer activity which is live data from open for inspections and offers on comparable properties which determines value.

In depth, market specific experience - dealing with a representative that is exclusively experienced with your postcode.

By seeking a market appraisal from a real estate agent, you can get a more accurate and up-to-date estimate of what your property is worth in the current market. This can help you make more informed decisions when it comes to setting an asking price, negotiating with potential buyers, and ultimately selling your property for the best possible price.

Contact us to to receive an accurate indication of what you can realistically expect to get for your property in the current market.