Estate Agent Valuations. How?

Just a quick query for anyone form EA's on here. How do you come up with a valuation? Is it just a guesstimation?

How do you know who to go with when there is a substantial difference of opinion of the value?

I know the market is stalling but should there be a 70k difference range 381k to 450K?

Anyone got any ideas or suggestions?

they value using comparable evidence -factoring in condition of property.
watch out for cowboys over valuing the property so that you will choose them to sell.

Take the most recent sales and asking prices ( you may not be able to get hold of the eventual sales price ) of the most similar properties in the most immediate area.

A search on Daft and My Home etc shpuld give you a quick list of appropriate areas.

Tweak prices up/down for the following, not limited to...

Location: same estate, nearest estate....
Size/Rooms: same size, factor for smaller or larger.......
Condition: Work required, updating....
Special Features: Conservatory, garage, extension, garden, aspect, attic conversion....
Any factor of miscellaneous factors, next door to sub station/park will affect in appropriate way also.

A bluffers guide to appraising. Ultimately it is what someone is prepared to pay and if some one else was preppared to pay x for the same 2 bed semi next door, last week, then that wont be a bad stating point.

There is a significant difference between a valuation and an appraisal.
A valuation is the Estate Agent or Valuers opinion on what the property is worth for finance/legal purposes.
An appraisal is the Estate Agent or Valuer's opinion on what the property would realise in the event it was brought to the market.

mo3art said:

There is a significant difference between a valuation and an appraisal.
A valuation is the Estate Agent or Valuers opinion on what the property is worth for finance/legal purposes.
An appraisal is the Estate Agent or Valuer's opinion on what the property would realise in the event it was brought to the market.

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Why are they different?

Apraisal = a value placed on a property for tax or legal puposes etc and is fixed in value.

Valuation= market price/"guide" that it is expected to sell for and can change

A valuer will sign off/ certify an appraisal price, valuation is a fluid number....




My understanding anyway...

monkeyboy said:

Apraisal = a value placed on a property for tax or legal puposes etc and is fixed in value.

Valuation= market price/"guide" that it is expected to sell for and can change

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That's the reverse of the way mo3art described them.

Also, I don't understand why a valuers opinion of what a property is worth for financial/legal purposes would be any different to what it's worth on the market.

Thanks for the replys...Am still unsure as to how there is such a large difference between valuations or appraisals.

I may as the EA's themselves (Three of them)...see what they have to say.

Monkeyboy ta for that I will try and see what similar in the area are going for or have sold at and adjust accordingly.

whathome said:

That's the reverse of the way mo3art described them.

Also, I don't understand why a valuers opinion of what a property is worth for financial/legal purposes would be any different to what it's worth on the market.

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Oh yeah! swith the words !