Date: 28th Nov 2024

Are you thinking of selling your home? One of the first things you'll need to do is get a property appraisal. A property appraisal is an estimate of the market value of your home, as determined by an appraiser – helping you sell your house for a fair and accurate price. Appraisals are also used by homeowners looking to refinance or find out how much their property is worth in the fluctuating housing market.

Why do you need a property appraisal?

In New Zealand, a property appraisal is required to list a property for sale on the market. It is also necessary as part of an agency agreement between a real estate agency and a vendor (the seller).

Obtaining a property appraisal provides an up-to-date, indicative assessment of how much your home may be worth. That means you'll be able to make informed decisions when:

• Deciding whether to sell your current home or use it as a rental
• Determining the price of your property
• Choosing your next home

An appraiser should provide an accurate appraisal that considers local housing market trends – ensuring that, if you choose to put your home up for sale, it's sold at a suitable price in a timely manner.

How do you find a property appraiser?

Almost every real estate agent will provide a free property appraisal to vendors. Make sure to choose an appraiser with extensive experience selling properties in your area. It's also possible to get property appraisals from multiple agents and compare results; however, this will take more time.

Note that property valuations and appraisals aren't the same thing. An appraisal is only an estimate of your property value and can be conducted by any real estate agency (usually for free). On the other hand, a property valuation is a more thorough service that can only be conducted by a registered property valuer (usually for $700-$1100, depending on your region). Buyers typically use property valuations to get a mortgage from a lender.

What happens during a property appraisal?

A free property appraisal generally consists of the following:

1. Initial consultation: You contact an appraiser and schedule a meeting. Make sure to have any documents, such as floor plans and renovation data, prepared in advance.
2. Property inspection and assessment: The appraiser visits your property to assess your home's value, considering the age, layout, condition, features, size, location, and more.
3. Analysis and comparison: The appraiser draws an estimated value by looking at comparable properties in size, layout, and condition in your area. They then adjust the sales price estimate based on the difference in features.
4. Final market value estimate: The appraiser delivers the final results for your market appraisal.

During the appraisal, your agent will also provide advice on how to present your property in the best light possible, helping to bridge any perceived difference in condition compared to similar homes.

Key factors influencing your property's value

Location

Access to local amenities, school zoning, and proximity to public transport options all affect how much your home is worth. Appraisers will compare your house to others recently sold nearby, providing an accurate estimate of the local prices.

Property size and features

The bigger the building is, the more it's generally worth. Appraisers take into account not only the square meterage of your property but also the number of bedrooms and bathrooms. They'll adjust prices based on other amenities like pools or exterior grills.

Condition and improvements

Homes that require repairs are generally worth less than homes in good condition or recently refurbished. If you've renovated your home, be sure to let your appraiser know so they can take upgrades and improvements into consideration.

Current market conditions

The housing market is constantly changing, and prices from one year prior can be completely different the next. That's why it's so important to have a local home appraiser who knows your suburb inside and out. By choosing a local agent with expertise in local residential sales, you can ensure a more accurate house appraisal that considers the current market trends.

How to prepare for your home appraisal

There are a few low-cost things you can do to make the most of your free appraisal:

1. Prepare documents in advance: Sharing documents like floor plan data can help streamline the process and provide a more accurate price estimate. It's also good to share details about any refurbishments that may increase the value of your home.
2. Tidy up your home: Your goal should be to make your home look the very best it can. Ensure your house looks nice inside and out by trimming the lawn, weeding the garden, and decluttering the interior.
3. Ensure your property is accessible: For the most accurate service, ensure that your appraiser can access every part of the house when appraisal day comes.

Frequently asked questions

How much does a property appraisal cost?

Most real estate agents in NZ will provide a free appraisal for any vendor. Fill out our form for your free Current Market Appraisal in Hawkes Bay, Levin, Rotorua, Taupo, Tauranga, Wairarapa, or the Western Bay of Plenty.

Who determines the value of a property?

Home appraisers can provide an estimated value for your property, which can be used as a reference when selling your home. However, property valuations, which are a more thorough and lengthier process, can only be conducted by a registered property valuer.

How long does a property appraisal take?

Property appraisers generally take less than an hour to assess your home in person. Following the home assessment, they'll spend a few days preparing an appraisal report, considering comparable properties and other factors.

Are home appraisals based on the current market?

Yes, the appraisal process considers current market trends. Appraisers will look at recent sales data of local, comparable properties to help determine an accurate price.

Are property appraisals public record?

No, property appraisals aren't publicly recorded. However, details surrounding the final selling price of your property will be recorded and made available upon request from your local council.

Ready to discover your property's true worth?

Home appraisals are essential for any homeowners interested in selling their property – and getting an accurate appraisal starts with finding a reliable, experienced real estate agency.

Tremains has over 50 years of experience working with New Zealand clients. With offices in Hawkes Bay, Levin, Rotorua, Taupo, Tauranga, Wairarapa, and the Western Bay of Plenty, we help Kiwis all over discover how much their home is worth. Talk to us today about getting your no-obligation free property appraisal!