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Free appraisal seems a bit of a waste of time

Discussion in 'The Buying & Selling Process' started by wylie, 27th Feb, 2016.

  1. wylie

    wylie Moderator Staff Member

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    I took up the offer of a local agent to give me an appraisal. I usually ignore these things, but knowing I want to release one house from three tied together, and that I would be having a bank value the house very soon, I thought I would run with it.

    A very nice man came through, saw the whole house, but the appraisal I got back had comparable properties ranging from $850K to $1.4M. There was no indication of where our house sat in that range (I would guess somewhere in the middle, probably on the lower side of the middle).

    I made it very clear we have no intention of selling, but we may sell one of the other houses, or both of them, or the block between them, so I am a potential vendor. But I still have no clue where our house sits within that very large range. We were provided quite a few comparables, but with styles ranging from brand new modern to old renovated queenslanders, with the only link being number of bedrooms and bathrooms and same suburb.

    I would think most people looking for modern builds would not look at our house, and vice versa.

    For me, it was disappointing. I've let them know I'm keen to know where we sit in that range. I'll wait and see if they can pin it down a bit more.

    Has anybody had one of these "we are in your street this week" appraisals, and was it more helpful than the one I just had?
     
  2. beachgurl

    beachgurl Well-Known Member

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    I'm having the same issues in what I remember is the same suburb. I have to sell mine and it is incredibly frustrating to receive such vague responses. I guess it shows that they receive their information from the same sources (RP Data) so when there is a large variance they don't put themselves out there to give an educated figure.

    In my PPR suburbs I've had pretty good appraisals but the comparable data made the agents' jobs pretty easy
     
  3. WattleIdo

    WattleIdo renovating Premium Member

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    A few years ago I asked a rea to appraise the house my mother had shared with her partner. They gave a smaller range and we were able to work with that, staying in the lower part of the range. Might have worked better because it was a rea who pm's one of my properties elsewhere.
     
  4. willair

    willair Well-Known Member Premium Member

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    That's been happening a lot ,but now agents without current listings seem to sending letters with the home owner on the letter head or property investor so they would know a lot about the person just from the address and all the other properties,not asking for anything ,just saying can you please contact the agent, from a sales point those letters are the negative value of information,and some it may offend intellectually..
     
  5. Ran Gus

    Ran Gus Well-Known Member

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    Sounds bizarre. Appraisal completed but no indicative price or even price range? (not sure 'between $850k and $1.4M' really counts, that's ridiculously broad).

    You'd expect they might give you a smaller range e.g 'between X and X+$50k'. Otherwise all they've really done is give you a list of somewhat comparable properties with no real conclusion or outcome on price...I can understand your disappointment.

    Not that appraisals are particularly reliable, but they're usually more precise than what you've described (in my experience).
     
  6. Rich W

    Rich W Well-Known Member

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    I'm guessing the appraisal would be more accurate if you told them you were looking to sell the property? I guess they don't want to waste their time unless he's getting some business?
     
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  7. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    ^ ^ +1 this.
     
  8. Anthony416

    Anthony416 Active Member

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    Clearly useless information, the agency just has expanded their mailing list and contact base that can be passed onto the next new staff member who joins the office as part of their sales training,"here go thru this list and make some sales"
    Happened to me many times, when I ask details they usually say, "Mr/Ms xx has left the agency and now I have been given their contact list to go thru"

    Time wasters basically, there is more accurate information available from other sources.
     
  9. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Anybody with a bit of experience would be able to do their own appraisals quickly and accurately rather than playing around with salespeople and their games.
     
  10. Ed Barton

    Ed Barton Well-Known Member

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    Why offer unsolicited appraisals then?
     
  11. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    To get their foot in the door, network, build relationships, get referrals, etc, etc most likely, all leading to future business.
     
  12. Ed Barton

    Ed Barton Well-Known Member

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    Absolutely.

    But such a crappy appraisal just says, get your foot out of my door before I break your toes, no networking, destroying relationships, getting bad referrals - all leading to no future business. Would Wylie consider this agent to sell one of her properties? - I doubt it.

    If an agent doesn't want to do unsolicited appraisals then they shouldn't offer it. Unsolicited/door knocking/cold calling style appraisals are done for all the reasons you mentioned. Only a tiny percentage of those appraisals result in an immediate listing. The fruits of the labour is in the future listings and brand building.
     
  13. Depreciator

    Depreciator Moderator Staff Member

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    I had an agent come through once and he never got back to me at all. I suspect my place was a bit difficult to estimate because there would be no comparables. I told him before he came that it wasn't going to be easy. I knew it was a data base building exercise, but I was curious about what he thought.
     
  14. Mick Butterfield

    Mick Butterfield Well-Known Member

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    I agree but surely if you are going to go the effort of showing up and building a relationship you could put a bit of work into the appraisal also. Very slack from the agent considering there was an indication that there may be other properties to sell.
     
  15. tobe

    tobe Well-Known Member

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    If you're not selling, there's no point getting a real estate agents appraisal.
    Get a bank valuation done. They are free through a broker (and maybe through the branch too).
    Alternatively use the capital improved value on your rates notice, its pretty accurate and comparable to a bank valuation (if not the actual selling price, if you sold).
     
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  16. Melb_gal

    Melb_gal Member

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    A rea, IMO, is a marketing agent for your property. They are not buying your property so their opinion of price is just that - their opinion. What they should be experts in is understanding who the target market for your property is and advise you on the best marketing strategies to achieve the best possible price. Although a price estimate given to you is extremely broad, it was (hopefully) provided by the software the wet behind the ears agent used, who is most likely getting bugger all mentoring from the more experienced agents in his/her office. He did do you a favour, and that is to steer clear of this agency when the time does come for you to sell! A bank valuation, as @tobe said, is the best indicator of value.
     
  17. TMNT

    TMNT Well-Known Member

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    I frankly think anything a selling agent says while tying to get your business is a waste of time
     
  18. wylie

    wylie Moderator Staff Member

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    Update: They did follow up today with a call and an email (in reply to my email asking where we sat in that range). They appraised another house for me a while back which was helpful, so they were not cold calling. They knew for sure we would not be listing, but also know that we may have other property/ies to list.

    I missed the call, but the email did explain where they thought we sat in that range. They also explained why they put in the lower comparable (same street). We know that house well, so it was a good place to start and add what our house has that it doesn't, so I now understand why it was in there.

    So, I probably jumped the gun with this whinge. They've now explained things more clearly.

    And I wanted a real estate appraisal because banks (IMHO) value low. I wanted to get a feel for what they thought was comparable to our house. I can look the recent sales up myself but I'm using my opinion on houses that I've not seen from listing photos, whereas they have either seen them, or some of them.

    Anyway, I'm more comfortable now having had their reasons for the big range explained and the range they have now given me is a much narrower band.

    And, yes, I would consider listing with them.
     
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