What appraisals do (similar to independent valuations) is to look back at comparable sales of similar homes in your area, and based on those comparable sales and the characteristics/condition of your home, come to a ‘best guess’ of what it can possibly fetch in the market today assuming that there is a similar buyer out there. In short, it is based on historic figures and incorporates certain projections and assumptions.
To make things more challenging, other than the home itself, there are other variables to ‘value’. Here are some examples:
- Neighborhood characteristics (Are your neighbours houses’ equally nice and tidy? Is it a tree-lined street and close to parks? Some streets are better than others for e.g. Kesteven Avenue, Riddell Road and Kildare Avenue are popular streets in Glendowie)
- Zoning classification and description under the Unitary Plan. Is there potential for future development and will buyers value it? Will the sea view towards Brown Island and Rangitoto be unobstructed or likely to be built out by intensification of land use?
- Available public or private utilities like good schools (Glendowie Primary, St Heliers School, Double Grammar Zone etc), great shopping areas (e.g. St Heliers Village) etc
Because so many factors play into a home’s appraised value, there is huge subjectivity in the process. What matters to one buyer may not matter at all to another (or becomes a downside). For example, some buyers love old villa styles while others prefer more modern architecture. One buyer’s circumstance (for e.g. new baby on the way or job change) may necessitate him/her buying a house at THAT time even if it means paying more (sometimes, a lot more). However, that buyer may not exist for your home when you come to sell.
Ultimately, you need to remember this. In the sale of your home, there are only 2 opinions that matter: Yours as the seller, and that of the best buyer.