Agent appraisals in South Australia are opinions, not guarantees. They rely on available evidence and assumptions about buyer behaviour. If momentum changes, those assumptions can weaken quickly.
This explanation breaks down how appraisals work during residential selling. Rather than treating appraisals as fixed, it explains their risks within a live selling campaign in SA.
What a property appraisal is and is not
A price opinion reflects recent comparisons. It should not predict buyer behaviour with certainty. They rely on stable conditions at the time they are prepared.
When stock shifts, appraisal accuracy can degrade. This does not mean incompetence; it highlights that appraisals are time sensitive.
Misinterpreting comparable sales
Misalignment happens when assumptions break. Algorithmic tools often ignore nuance between suburbs and buyer pools.
Comparable sales can also mislead if taken literally. A sale reflects conditions at that moment, not necessarily current sentiment.
Differences between estimates and appraisals
AVMs look exact, but they are modelled results. They miss real-time buyer behaviour.
Agent assessments incorporate buyer feedback. That judgement is imperfect, but it adapts faster than static models.
Timing risk between appraisal and launch
Timing risk emerges when markets shift between appraisal and launch. Interest rate changes can alter buyer behaviour.
The estimate prepared weeks earlier may miss reality. That drift often explains extended days on market.
How to detect shifting market feedback
Thin inspections often signals appraisal issues. Silence is information, not reassurance.
Reassessing assumptions early helps preserve leverage. Across campaigns, appraisals work best when treated as reference frames, not fixed truths.
errors in property appraisals