Andrew breaks down the real value of your home.
When you're selling your home, there are two types of valuations: one from the bank, the other from the real estate agent.
Why are they sometimes different? Well, because they are!
A bank is searching for a guarantee they are making a sound investment in the person they will eventually lend money to to buy your home.
They will use a qualified valuer - who will also charge a fee for an independent assessment.
The bank's value estimate will often be on the conservative side - sometimes as much as 10 to 20 per cent under the selling price.
Real Estate Valuation
The real estate agent's valuation is really more of a "guesstimate". However, most agents will have a wealth of market knowledge and will provide their opinion free of charge.
Their assessment is based on the area and recent sales. It is a useful guide to have when decided on a price for your home.
However, keep in mind the figure quoted by your real estate agent is often optimistic - after all, they want your sale!
Most of the factors affecting the value of your home are out of your control. However, it can't hurt to complete any renovations and keep it tidy.
At the end of the day, property is worth what someone is willing to pay for it - and what you're willing to let it go for.