If you are thinking about selling your Central Coast home, you will be offered an appraisal. Most people do not know what that actually means, or what makes a good one.
Here is a plain-English breakdown.
What an Appraisal Is
A property appraisal is an assessment of what your home is likely to sell for in the current market. It is produced by a real estate agent based on recent comparable sales, the property's specific features and condition, and current demand.
An appraisal is not a valuation. A bank valuation is a formal assessment produced by a licensed valuer for mortgage purposes. An appraisal is an agent's professional opinion, not a regulated figure.
What an Appraisal Is Not
An appraisal is not a guaranteed sale price. It is not a figure you can take to the bank. It does not lock you into anything.
Some agents use appraisals as a foot-in-the-door. They quote a high number to win the listing, then quietly adjust the price guide down after the property sits on the market. This is called overquoting and it costs sellers time and money.
What to Expect During an Appraisal
A thorough appraisal takes 30 to 60 minutes. The agent will walk through the property, assess the land size, street position, internal condition, renovations or improvements, and external presentation.
After the inspection, they should show you the comparable sales evidence they are using to reach their figure. If they quote a price without showing you the data, ask for it. Any agent worth dealing with will have it ready.
What Affects Your Appraisal Figure
- Recent sales of comparable properties in your street and suburb within the past 90 days
- Your land size relative to the street average
- The condition of the home and any recent improvements
- Aspects and orientation (north-facing properties consistently achieve premiums)
- Days on market for comparable sales (longer days suggest the market is softer)
How to Get the Most Out of Your Appraisal
Come prepared with questions. Ask the agent what comparable sales they are using. Ask what the current average days on market is in your suburb. Ask what they would do differently to achieve a result at the top of their range.
The appraisal meeting is also your opportunity to assess the agent. Do they know the local market? Do they communicate clearly? Do they answer your questions directly or deflect?
How Often Should You Get an Appraisal?
If you are planning to sell in the next 12 months, an annual appraisal helps you track the market. If you are actively planning a sale, a fresh appraisal within 60 days of listing gives you the most relevant data.
Book a free appraisal with Rhys Reid. Plain data, honest opinion, no obligation.