One of the most controversial elements of becoming a property buyer is coming to grips with the concept of property valuations. It’s important to bear in mind that Real Estate Sales Agents are required (by law) to work in the best interests of the seller and therefore they must attempt to achieve the highest possible selling price.
As Real Estate Buyers Agents we are required (by law) to work in the best interests of the buyer. Part of the buying process is to establish a fair market price for the property in which you’re interested. We do this using a process generally referred to as a ‘Property Appraisal’.
This process requires that we establish recent sale prices for an area AND even more specifically, recent sale prices of properties that compare favourably to the one in which you’re interested. Additionally we visit the area and talk to local residents, business owners and real estate agents. We never engage the Sales Agent in negotiations before establishing fair market values.
It’s important to understand the difference between property valuations and property appraisals.
Property valuations are performed by professional Valuers who are required to complete very specific qualifications, be appropriately licensed and comply with industry standards set down by their professional industry organisation (such as the Australian Property Institute).
Property appraisals are generally performed by Real Estate Agents who are (usually) not licensed Valuers. However one of the most common methods used by professional Valuers is the ‘comparable sales’ method – where a specific property’s selling price is compared to recent sales of similar properties in the same general area. This (together with other processes), is the method we use when purchasing your property.
Get a professionally licensed Buyers Advocate on your side. Give us a call on
1300 507 559 or send us an email at info@yourpropertybuyer.com.au and we’ll call you.
