If you've ever had multiple agents appraise your property, you've probably noticed that not everyone arrives at the same figure.
It's one of the most common questions we hear from homeowners:
"Why did one agent tell me my home is worth more than another agent?"
The simple answer is that a property appraisal isn't an exact science. It is a professional opinion based on a range of factors, including market conditions, buyer demand, local competition, and recent sales evidence.
While appraisals may differ, understanding how they're determined can help you make more informed decisions when it comes time to sell.
Most agents will begin by looking at comparable sales in your area. These are properties that have recently sold and are similar to yours in terms of location, land size, features, and overall appeal.
While this information is important, recent sales only tell us what buyers were prepared to pay in the past.
The question that matters most is:
What are buyers willing to pay when your property hits the market?
Depending on market conditions, the answer can be very different.
In a strong seller's market, where demand outweighs supply, historical sales data may still be highly relevant because property values are often rising.
In a more balanced market, or a buyer's market, agents need to look beyond past sales and consider what's happening right now.
This includes:
These factors can have a significant influence on how buyers respond to a property once it launches to market.
Different agents may place different levels of emphasis on certain factors.
Some may focus heavily on recent sales results while others may take a broader view by considering current market activity and buyer behaviour. Neither approach is necessarily right or wrong, but it's important to understand how an agent arrived at their recommendation.
Rather than asking: "Who gave me the highest appraisal?"
A better question might be: "What evidence supports that appraisal?"
A good agent should be able to clearly explain how they arrived at their assessment and what market conditions they're seeing on the ground.
Many homeowners are surprised to learn that the appraisal itself doesn't determine the final sale price.
The strategy used to bring a property to market often has a much bigger impact.
A well-positioned property can:
Conversely, a property that enters the market at a price buyers don't perceive as value can receive less enquiry, fewer inspections, and may ultimately require price adjustments.
That's why pricing and marketing strategy should always work hand in hand.
When choosing an agent, it's natural to be drawn to the highest appraisal. However, the most important question is not who predicts the highest price.
It's who has a genuine strategy to help you achieve the best possible result in the current market.
An accurate appraisal should provide a realistic starting point, while a tailored marketing and pricing strategy helps maximise the amount you ultimately receive in your pocket at settlement.
Every property is unique, and every homeowner's goals are different. If you'd like to understand how your property's value has been assessed, or discuss the current market in more detail, we'd be happy to help.
Get in touch with our team for a personalised property discussion and market update.