The Difference between Rent Appraisal vs. Valuation

📊 Market Appraisal vs. Valuation: What’s the Difference for Property Investors?
 
A common point of confusion among property investors is the distinction between a Market Appraisal and a Valuation. Both reports provide insight into the worth of a property, but they serve different purposes and are used by different professionals.
 
🔍 Market Appraisal:
● Created by real estate agents to encourage selling or as part of their pitch.
● Considers your property’s features (size, style, materials, etc.) and compares it to similar homes recently sold.
● Provides a price range that reflects the agent’s opinion, influenced by their local market knowledge, marketing methods, and negotiation skills.
● Remember: It’s an estimate—subject to market conditions and the agent’s abilities!
 
🏦 Valuation:
● Conducted by a valuer on behalf of a lender.
● May involve a physical inspection or rely on automated systems and algorithms to assess the property’s value.
● Focuses on the amount a bank might lend against the property, typically with a 20% deposit.
● Valuations often reflect a more conservative figure—think of it as the rock-bottom price.
 
🧠 Tip: While a market appraisal gives a hopeful price range, a valuation is a good reality check. If a property sells for well above its valuation, buyers might struggle to secure bank support.
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The Difference between Rent Appraisal vs. Valuation

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