Step 2 - Valuations versus Appraisals
Get an independent evaluation (not through estate agents). An estate agent will generally ‘appraise’ the value of your home and not actually ‘value’ it – THERE IS A DIFFERENCE!!!! Appraising means they can pitch the price to their current strategy – a simple way to understand an Estate Agents strategy is to ask a few agents to value your home, some will be higher and some will be lower, they all have their owns reasons for valuing this way, some are trying to drive the market prices up and some are trying to price for a quick sale and fast turnover. All of these strategies are usually not most beneficial to the seller who has no long term strategy, they just want to sell their home. Setting the right price for your house is key, as a house that becomes ‘stale’ and stays on the market for too long will leave potential buyers wondering why – this will lead to a self fulfilling prophecy where the house won’t sell even at lower than market value, and if you undervalue your house you could lose out on money.
