The start of spring seems to have had an identity crisis. Week one felt like summer decided to turn up early, week two went cold enough that half of Moreton Bay dug the doonas back out. Even the weather doesn't seem to know what season it is.
However, it is that time of year people say is the best time to sell because the gardens are looking good and the street appeal's at its peak. And look, presentation matters a lot, we've said that before and we're not about to take it back.
But presentation is only one factor in whether a property sells. It can help you get the maximum price, but most of the time whether a property sells or sits on the market comes down to price.
Interestingly, there's more than one price. Five, according to an article we've just read. Here's the quick version.
The bank's valuation: Conservative, as they just want to make sure they can get their money back if you can't pay.
The council's valuation: Oddly low. However, considering your rates are calculated from this number, let's not say anything.
The owner's price: This is your dream price, or maybe the number you'll take, or the number you tell your agent you'll take.
The agent's appraisal: We'll get into this one a bit more below.
The sale price: The one number nobody knows until a contract's signed. Before that, it's a guess.
The Block TV show price: This depends on whether Adrian Portelli is bidding or building a new petrol station.
I know I said five but just listed six. Yeah, the last one is not from the article, that bonus one is from us. Anyone watching The Block this year?
Now the only one we have experience in is the agent's price. You know, being real estate agents and all. Well, sometimes the owner's price too. But how do agents come up with this magical number they give you when you request an appraisal?
There are actually a few different ways we can go about it. Every agent might do this slightly differently, so here's how we approach it.
The instant appraisal. These have become a lot easier to find online over the past few years. Basically, a computer program pulls together information on your property and others like it nearby and produces an easy-to-read report. It's usually free, usually quick, and usually lets us know you've had a look, which is our cue to say hello. The upside is speed and convenience, no agent standing in your kitchen required. The downside is it can be a bit generic, since it's only working with what's publicly available. Verdict, a solid quick read on roughly where your property sits.
Yes, this is the bit where we're contractually obliged to say, ‘free instant property appraisal, no obligation.’ Consider it said.
The desktop appraisal. This is where we actually spend time on it ourselves, digging into what's available on your property and putting together something with a fair bit more detail than an instant report gives you, usually after a quick call so you can tell us about any upgrades or renovations that don't show up online. We call these property price reports. The upside, we're not knocking on doors or interrupting tenants, and you still get something considerably more detailed than the instant version. The downside, we haven't laid eyes on the place, so there's always a gap between what we can see online and what's there.
Prefer we do the digging instead? Flick us an email and we'll get into the detail without knocking on your door.
The in-person appraisal. This is the one where we turn up, see the upgrades and renovations for ourselves, meet you, and hear whatever you want to tell us about the place. We'll take a proper look around and usually follow up with a report that goes into a lot more detail than the other two. These matter most if you're genuinely thinking about selling, even if that's still six to ten months away, because it's our chance to talk through what will help the sale and what might hurt it, well before you're under any pressure to list.
Rather us pop around? Give us a call, we drink our coffee white, no sugar.
If that was a lot to read, here's the same information condensed. An instant appraisal is immediate, basic and best for a rough idea. A desktop appraisal takes a day or two, offers moderate detail and gives you a better understanding. An in-person appraisal is by appointment, provides the most detail and is best when you're considering selling. All three are free, although the in-person version may cost you a cup of coffee.
This newsletter has turned into one of our longer ones. This time we went a bit deeper into the process side of the job rather than the market itself, and we didn't even get to the difference between an advertised price and a contract price. Another time, maybe.
As for the market, properties priced right are selling. The ones that aren't are sitting there, wondering why. Interest rates haven't moved, though we're not holding our breath. Let's see how the rest of spring goes.
P.S. Something's changing for buyers over the next few months. And no, you haven't missed the boat. We'll get into why next month.