ap­praisal crit­i­cal

The Advertiser - Real Estate - - Open House -

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.

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