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Market5 min read

What a valuation actually measures

A valuation is an argument built from comparables. If you cannot see the comparables, you cannot judge the argument.

Julian Vasquez

Senior Agent, Central District

Every valuation is a claim: this property is worth roughly what those properties achieved, adjusted for these differences. The number at the bottom is the least interesting part of the document.

Ask for the adjustments

Two houses on the same street rarely justify the same price per square foot. Aspect, condition, floor level, plot width, and whether the extension has consent all move the figure.

A valuation that shows those adjustments can be argued with. One that shows only a headline number cannot, which is usually why it is presented that way.

Beware the flattering appraisal

Agents compete for instructions, and the easiest way to win one is to quote the highest number. The cost of that is paid three months later in a price reduction, by which point the listing has lost the attention it launched with.

Ask each agent what evidence supports their figure, and take the one whose evidence is strongest — not the one whose number is largest.

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