In short, yes there is a difference between an appraisal and a valuation. Even though we can loosely use the language in our everyday conversation, as an agent, it could lead to some complicated implications if we were offering valuations without the necessary qualifications to do so.
A market appraisal is what you would ask a real estate agent to perform when you’re thinking about selling or renting your property. It is usually derived from a breakdown of comparable sold properties within the same vicinity of yours. It is there to give you an indication of how your property will perform if you were to sell it in the current market. It is not formal and can only be used as a guide to better understand what your property is worth.
A valuation or sworn valuation is performed by a qualified valuer. The process of coming to the value of your property is a little more rigorous and further steps are taken to come to the final valuation. A formal valuation will be usually be required when dealing with deceased estates, settlements in divorce and when getting finance for purchasing a new property.
It’s better to understand the differences between the two as each may come at up at different numbers. The reason for this is because a sworn independent valuation is worked out only on numbers of past sales and broken down into square meterage. An appraisal may take into consideration how a buyer will react to a property and try to provide some foresight into the possibility of achieving a higher figure through an emotional purchase price, whilst still remaining conservative.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.