How to interpret an appraisal value—getting swayed by high or low figures can lead to trouble later

It is normal to feel something
the moment you see an appraisal value.

It's higher than I thought.
Is it really this low?
I don't know which company to trust.

Real estate is a major asset,
and it affects your future life,
so it is natural for your feelings to be swayed by the numbers.

However, in actual consultation settings,
what often leads to trouble later
is not so much whether the appraisal value was high or low,
but rather how you interpreted those numbers.

[Getting swayed by high or low figures makes it easy for your judgment to lose its focus]

When an appraisal value is high,
you feel a little relieved.

Conversely, if it is low,
you feel anxious.

But,
if those emotions are too strong,
the things you should actually be looking at get pushed to the background.

Why is it that price?
How do they intend to sell it at that price?
What kind of timeframe are they assuming?
If it doesn't sell, how will they revise the plan?

Even though you should really be looking at these things,
it becomes easy for your judgment to be swayed just by the impression of the numbers.

And if you proceed in this state,
it is easy to find it hard to be satisfied later.

[An appraisal value is not an answer, but 'that company's assessment']

First, as a major premise,
an appraisal value is not a finalized selling price.

The current market.
Surrounding examples.
Property conditions.
The assumed sales method.

Based on these things,
it is an assessment provided by each company.

In other words,
the appraisal value contains
that company's way of thinking.

That is why it differs from company to company.

If you remain unaware of this,
it will look as if the company with the high value is correct,
and the company with the low value is being passive.

But in reality,
there is a reason for the high number,
and there is a reason for the low number.

[The more you see a high appraisal value, the more calmly you should listen]

When you see a high appraisal value,
many people feel a bit relieved.

That is natural.

However, the most important thing here is to
ask for the reasoning before feeling relieved.

Why is it that amount?
What kind of sales strategy are they envisioning?
What kind of timeframe are they looking at?
What will they do if the response is weak?

If these points remain vague while only the conversation of
"we can do it at this price"
moves forward,
you should be a little careful.

A high number itself is not necessarily bad.

However,
a high appraisal without a visible reason
can cause the seller distress later on.

[What is truly scary is when your initial benchmark is off]

When a high appraisal value is given,
that number stays in your head.

Then,
even if it sells at a realistic price,

you might wonder if it could have sold for more.
You might feel like you sold it too cheaply.

That feeling is likely to linger.

This is quite important.

It is not only those who sold cheaply who tend to struggle with the sale.

Those who held a high benchmark initially
may find it harder to be satisfied later on.

It is less about the appraisal value itself,
and more about the initial expectations.

[Low appraisal values can also have 'cautious reasons']

Conversely,
many people are disappointed if the appraisal value is lower than expected.

However, there is a background to low appraisal values as well.

They may be prioritizing a realistic closing, aiming for an early sale, or taking a stricter view of competitors and market movements.

Because of this way of thinking,
sometimes the figures that come out may look low.

Therefore,
it is better not to immediately decide that
low equals a bad company.

Rather,
a company that can carefully explain the premise of that price
may be easier to agree with later on.

[What you should look at is the 'way of thinking' rather than the amount]

When comparing appraisal values,
what I really want you to look at
more than the amount itself
is the reasoning behind how they arrived at it.

The reason for that price.
The philosophy behind how they sell.
Whether they are looking at your life after the sale.
Whether they are talking about not just the price, but also the process.

Just by looking at this,
the way you view an appraisal will change significantly.

Real estate sales
do not end when the property is sold.

Your life continues after that.

That is precisely why,
rather than just the height of the appraisal value,
you should look at whether they are careful in how they handle those figures
.

[People who are not swayed by appraisal values have questions rather than just looking at numbers]

People who are less likely to be swayed by appraisal values
have questions
rather than just accepting the numbers as they are.

Why is it this price?
If we list it at this amount, how will we proceed?
What if it doesn't sell?
Is it suitable for my situation?

Just by having these questions,
the appraisal becomes more than just a comparison of numbers;
it becomes a basis for judgment.

Conversely,
if you only look at whether it is high or low,
it is easy for things to become difficult later.

[Summary]

When you see an appraisal value,
it is natural for your feelings to be stirred.

But,
if you get swayed by high or low,
it becomes easy for things to become difficult later.

What is important is,

• that an appraisal value is not an answer, but an estimate

• Why you should ask for the reasoning behind higher figures

• That there are careful reasons behind lower figures

• Why you should look at the reasoning rather than the amount

is what this is about.

I believe that in real estate sales, the people who are most satisfied are not those who chose the highest appraisal, but

those who understood the meaning behind those figures and proceeded accordingly.

[Recommended next article]

If you would like to
organize your perspective on appraisal values and who to consult
a bit more, like we did here,
this article might also be helpful.

[Regarding consultations]

When it comes to real estate,
there is no need to make a decision immediately.

However, sometimes just organizing things a little
can change how you see the situation.

Here is a reference page for those who have started thinking about selling.

Even at the stage where you "haven't decided whether to sell yet,"
we accept consultations for organizing your situation.

▶ Real estate situation organization / Free consultation