Appraisal, Valuation & Evaluation

Question 1

Which 3 words must you and your clients understand the definitions of in order to avoid legal issues?

Answer 1

1.) Valuation
2.) Evaluation
3.) Appraisal

Question 2

Valuation meaning?

Answer 2

How much it would cost to BUILD the home.

Question 3

What does the valuation of a property NOT consider?

Answer 3

The property’s location.

Question 4

Who is the only kind of person that can give a valuation of a property?

Answer 4

A surveyor who registers with the Royal Institute of Chartered Surveyors.

Question 5

Evaluation meaning?

Answer 5

Assessing whether the building & location meet the needs of the buyer.

Question 6

What does the evaluation of a property NOT consider?

Answer 6

The value of a property.

Question 7

Appraisal meaning?

Answer 7

How an estate agent prices a property based on assessing:
- The home
- The local area
- The current market conditions

Question 8

How should you NOT position yourself when making an appraisal?

Answer 8

As an ‘expert’ or indicate that the amount has a legal basis.

Question 9

Which rough % of contracts with Estate Agents collapse due to incorrect pricing and buyer expectations?

Answer 9

30%

Question 10

How do you avoid contracts collapsing due to incorrect pricing and buyer expectations?

Answer 10

• Price the property realistically
• Market the property well
• Qualify buyers before contacting the sellers