If you’re thinking of selling your home, you’ll likely ask yourself, “What is the market value of my home?” Not only will detailed property research help you to determine whether or not it is the ideal to sell, but you can meet and negotiate with real estate agents with confidence when you’ve done your homework.
Here is a how-to on estimating your home’s value:
Check out recently sold identical homes in your area
Because location and access to amenities all impact a property’s value, it’s important for you to check out homes that are comparable to yours and have been sold recently (within the past six months or so). Check sold listings on sites such as Realestate.com.au and Domain.com.au and create a list of similar homes and their selling prices.
Compare and rank features
It’s not likely for you to find examples of properties that are similar to yours. But you can rate your home versus identical properties using certain features. Do this by checking properties with the same:
- Number of bedrooms and bathrooms
- Building style (for examples, new build or heritage)
- Land size and size of the home
- Condition and state of repair – does it require renovation? Are the fittings and appliances up to date?
- Outdoor features like a garage or off-road parking, swimming pool and gardens
For instance, picture that your property has a Victorian terrace identical to another that sold across the road, however, that property has a larger backyard and back lane access. What this means is that your home might have a lower market value. In contrast, if that property requires renovations and yours has recently been upgraded, your home could sell for a higher price. But regardless, valuation at this period should be considered an estimate.
Monitor the property market
It will always be a case-to-case basis when you compare one property with another. This is why it’s important to know the market in your location and what buyers are looking for property in your area. You have to track the time it takes different types of properties to sell, as well as auctions in your neighbourhood.
Aside from regularly reading property news, you can also utilise tools such as the CoreLogic Home Value Index, which monitors monthly changes throughout Australia. A rise in average home prices in your location will normally follow a rise in the market value of your property as well.
What elements affect property value?
Several factors impact a property’s value, which is why it is a job that is best done by experts. However, consider the following if you want to get a general idea of how much your property could be worth:
- Whether the time is a buyer’s market or a seller’s market
- Present interest rates and home loan restrictions
- The general economic outlook
- The present situation of the property market and average property prices
- Expected population growth in your location
- The size of the land and property
- The state of the property and potential for renovation
- Location, street and curb appeal
- How many bedrooms and bathrooms the property has
- Energy efficiency
- Outdoor elements such as landscaping and swimming pool
What are the usual property valuation mistakes?
- Comparing different properties, properties purchased too long ago
- Not being current with market trends
- Using emotion to value a property
- Using properties currently on the market for comparison. Don’t forget that the only good indicator of value is the market value, not price guides of properties that are still on the market
- Using untrustworthy sources of information, rather than reliable industry publications
What is the value of my property?
Volatile best describes the property market. It is the fact that the only way you can know for sure how much your property is worth is when it is purchased by someone. But getting the opinion of a property specialist is a great way to know the present value of your home and help you decide on the right time to sell.
A property agent can also explain finer data details, like the number of days a property was on the market before it was sold, the medium house price in your location and where the property is located, and the auction clearance rates, which can indicate the level of demand for property in your area.
Generally, there are two ways to determine the value of your property without cost to you:
Get a free online property estimate. There are plenty of online tools that give you an estimated value of your property instantly. You just have to type in your address. These free reports give you an in-depth knowledge of your property and the market with detailed information including property value estimate, comparable sales and past suburb performances.
Sign up for a free property appraisal. Find a real estate agent that will visit your property without obligation, and recommend a possible selling price using recent market activity. The agent should also walk you through the selling process and what is included in their service.