If you’re new to property investment, you’ve probably seen the terms “rental appraisal” and “sales appraisal.” What are they and what are the differences? More importantly, how do they benefit you as a property owner?
A rental appraisal details what level of rent an investment property might generate. This document includes valuable information, such as current market trends and conditions as well as what similar properties are being rented for in the area and the surrounding suburbs.
A Property Manager can conduct a rental appraisal of your property. This is an important step when you are planning to lease your property so you have a better understanding of how to market your property, what rent to charge and what demographic to target.
A rental appraisal can also be useful if you are considering purchasing more investment properties by gaining insight into potential returns. The appraisal could also help you assess your purchase when seeking a loan. Knowing your potential rental income can help you understand the affordability of your repayments.
A sales appraisal is generally a prediction of what your property may sell for, which is an important step before selling your property. It’s usually conducted by a sales agent. A sales appraisal may not reflect the current market but rather what a sales agent believes can be achieved on the market in the future when the property is being sold.
Sales appraisals can also be used for investors who aren’t selling now but may need them for tax or refinancing purposes. It is important to note that any sales appraisal is not a proper valuation. They can’t be used with any prospective lenders to establish the market value.
When selecting someone to perform a rental or sales appraisal, find a professional who is familiar with the suburb of your property.
To learn the value of your investment property, head over to our website www.rentalresults.com.au or contact Lauren Robinson on 0731237373