What Does a Property Appraisal Include?

Most of us have wondered, ‘what is my home really worth?’. Whether you are looking to sell or are just curious about value, a property appraisal can provide the best understanding of the price and what is happening in the local market.

This is an obligation-free assessment conducted by a real estate professional indicating what your home may achieve if it were listed for sale in the current market.

It may also include simple steps you can take before selling to increase its appeal and value. These insights allow sellers to plan and make informed decisions when considering their options for their next home.

What is a property appraisal?

Moving to a new home is an exciting chapter, but it is easy to feel overwhelmed – especially if it requires selling your existing property first. It is likely you will have many questions, and much of this will centre on how much your property is worth in the current market.

A property appraisal provides a concise snapshot of market conditions at a given moment, enabling homeowners to make informed decisions based on valuation. An agent will look at ‘comparable sales’ of what similar-sized properties with similar features and in a similar condition have achieved in recent weeks. They will also consider buyer demand in your neighbourhood and other data, such as days on market, when making their assessment.

This information, provided free of charge, may also include strategic ideas to maximise your home's sale price, such as whether to opt for an auction or a private treaty campaign. The agent utilises their experience and what they are seeing in the market first-hand in coming up with a price range.

It can be a good idea to obtain at least three appraisals from agents working in your suburb. This will not only give you a better idea of the value but also give you a chance to connect with experienced professionals and assess their marketing approach and communication style.

An appraisal is different to a valuation, which is a formal, legally binding assessment conducted by an independent certified practising valuer for a fee. These are typically used by a bank for refinancing, mortgage approval or taxation.

What does a property appraisal include?

A property appraisal is more than just an estimate of what your home could fetch; it is an overview of the current market and how your home compares to recent sales.

In coming up with a price range, an agent will consider the following factors:

• Property assessment – An evaluation of the block size, land topography, orientation, street appeal and style of dwelling. In addition to key features, such as the number of bedrooms and bathrooms, it will include any significant upgrades likely to add value, such as a new kitchen or bathroom. It may also highlight upgrades needed before selling, like new paint or carpet.

• Fixtures, fittings and outdoor areas – It will assess the value added by features such as energy efficiency upgrades, solar panels, air-conditioning, landscaping, decking, outdoor kitchen, sheds and garaging.

• Location analysis – Agents will look at buyer demand for homes in your area, as well as proximity to shopping, schools, and transport options. Top-performing school catchment areas can also greatly increase a property’s value. An appraisal may include planning regulations, heritage orders and an assessment of the likelihood of interest from developers or investors.

• Comparable sale – Importantly, a property appraisal includes research and analysis of similar-sized homes with the same kind of features that have sold in your suburb in the last 90 days. If your property is unique in your suburb, the agent will broaden their search to see what similar homes nearby have fetched.

• Market conditions – The appraisal will include broader trends, such as auction clearance rates in your suburb, days on market and current demand, to indicate whether conditions are favourable to buyers and sellers.

• Recommended sales strategy – It is crucial to identify which type of sale will produce the best results for your home. An appraisal may also recommend whether to use an auction, private treaty or Expressions of Interest campaign, and explain why.

• Estimated selling time – To help you plan your next move, an agent may try to give you a realistic timeframe needed to sell the property. Well-presented homes in high-demand locations may sell relatively quickly. However, if your home has a niche appeal, unique features or a higher price point, it can take longer to find the right buyer.

• Estimated price guide – Importantly, a property appraisal includes a realistic proposed price range for your property. This is based on all the information provided, the agent’s market experience and conversations with buyers.

• Marketing recommendations – Ideally, you want to reach the widest possible pool of potential purchasers, which means advertising and marketing. In addition to photography and floor plans, the agent may suggest copywriting, drone shots and a video.

Remember, the real estate market is constantly fluctuating, and prices are subject to change. If you received a property appraisal some time ago, it is worth going through the process again to ensure that you have the most current market insights. This will enable you to budget with confidence and set realistic expectations of your home’s value for what is happening now. Find out more here.

What do agents look for during an appraisal?

The good news is that you don’t have to worry about having your home in pristine condition to have it appraised by a real estate agent. They are experts at seeing through general clutter and will focus more on the property's size, number of bedrooms, features and overall condition.

They will be keen to know about any renovations or upgrades you have made during your ownership. You will also have a chance to ask any questions about the selling process and what to expect.

An appraisal will also highlight areas within the property that need improving, which could help secure a faster sale. These may be things that you might not have noticed, such as a leaky tap, peeling paint or a cracked floor tile.

Real estate agents are in a unique position to chat with prospective buyers every day and receive constant feedback during open homes and inspections. They know which features are attracting the most interest in your market and what can be turn-offs for buyers.

They are likely to make suggestions on improving the presentation to increase appeal to a broader market. This includes removing bulky furniture, taking down family photos and storing academic awards. Remember, it is hard for buyers to imagine their own life in your home if your personal items are prominent in every room.

In a competitive property market, styling can also help your property stand out from the crowd. Your agent can let you know whether a full or partial home staging package is necessary. It may be that you don’t need to do every room, just key areas that can influence a buyer, such as the kitchen, living area and master bedroom.

How does the property appraisal process work?

They will arrange a time to meet at your property and conduct their assessment. You can even organise a virtual inspection if that is easier, utilising either your phone camera or a video walk-through of your property. This is a quick process and doesn’t require any tidying up or decluttering.

Conducting the appraisal virtually is a good idea if you are considering selling but are not yet ready to commit to a sales campaign, or perhaps you are time-poor. Find out more here.

Why get a property appraisal?

You should consider organising a property appraisal if you are thinking about selling your home, refinancing or wondering where your home sits in the market. It is a great way to unlock your property’s potential and work out a strategy to maximise its value.

It can be beneficial if you are experiencing the following:

• Lifestyle and family changes – you are about to start a family; it’s time to upgrade to a larger home, or if you are empty-nesters.

• Location change – your current address no longer meets your needs, or you are considering a job interstate or moving to a regional area.

• Financial changes – you are considering downsizing your mortgage by moving to a smaller and more affordable property.

• Looking to renovate to sell – if you are wondering whether to make changes or perhaps to hold onto the property a little longer to maximise the sale. price.