Why real estate agents and banks value your home differently?
Have you ever wondered why a home can be a listed for a price, valued at another price and then sold for a figure that leaves everyone scratching their heads?
We’ll help shed some light on the different types of property prices and what they mean.
The Real Estate Agent’s Price
Real estate agents are commonly asked to assess the market value of your property. They will typically inspect the home and research comparable sales in the local suburb. This price is a useful guide for the vendor when deciding what price to advertise at.
The Sale Price
There are several different factors that influence the final sale price of the property, including the current market, recent sales in the area and competition-driven price inflation. The price that the vendor is asking for and the price that the buyers are willing to pay can be two very different prices.
The Bank Valuation
A bank valuation provides the estimated amount for which they property would be expected to sell. Bank valuations are usually quite conservative, sometimes 10-20% less than the current selling price of comparable homes. When calculating the price of a property, there are a few things the banks take into consideration, such as the property and land size, the number of bedrooms, location of the property, and the building structure and condition.
In the end, the market will usually decide a property’s value by what a buyer is willing to pay for it at auction or through private sale.
Completing your House Sale with Universal Property
Whether you are preparing to sell or looking for more information, Universal Property is here to assist you in your sales journey. We offer you a superior and personalised service that helps make the selling process as smooth as possible.
Contact Jesse on +61 431 761 644 or email us at info@universalproperty.com.au
Universal Property featuring the finest, most exclusive luxury real estate listings in Noosa Heads, Noosa Springs Golf & Spa Resort, plus the surrounding areas too Noosa.
Elite network of Professionals focused on the highest level of client service, integrity, loyalty and professionalism. Unrivalled experience with extensive market, community and local area knowledge.
