WHEN you are considering putting a property on the market, the first step you should take is to contact a number of real estate agencies or salespeople to request an appraisal.
An appraisal will provide you with an estimate of the expected sale price of the property, based on market trends and recent sales in the area.
It is important not to confuse appraisals with formal valuations, which are much more complex and conducted by qualified valuers. It is not usual for an agency to charge a fee for an appraisal.
Appraisals should be used as an estimate only of price, as they are not definitive and have no legal standing.
However, the appraisal figure may later be used when signing the Sales Agency Agreement as the agent’s ‘‘genuine estimate’’, in which case there are legal specifications and the figure should be backed by comparable data.
Vendors may be inclined to appoint the salesperson who gives the highest estimated sale price in the appraisal. However, you should carefully review each appraisal and the services provided in the sale proposal.
Other important considerations i nclude commission and/or fees charged, the marketing plan proposed, whether the agency and the salesperson are members of REISA and the agency’s performance.
You may also consider speaking to recent clients of the agency to confirm they were satisfied with the service.
To find out if your real estate professional is a REISA member, visit www.reisa.com.au.