Understanding your property value can influence your decision to put your home on the market. So how do you know what price to expect from your home?
When selling your property, the million-dollar question is usually, ‘how much is it worth?’ This is especially true if you have your sights set on another property to buy, so you know if it’s within your budget.
Here are some tools and ideas for estimating the value of your property.
Resources – what to look for
The internet can be very useful if you’re trying to find out information about your property. There are plenty of websites you can use to find out how the property market is doing in your area, recent sales and what your property previously sold for.
Property Value by CoreLogic is a great starting point. This website allows you to compare suburbs or enter specific addresses, giving you an overview of estimated value and approximate mortgage repayment. Or you can purchase a detailed property report to get more detail about your property’s sale history and comparative prices in the local area.
When doing your own research, it’s important to compare apples with apples. A four-bedroom freestanding property is not the same as a two-bedroom semi so there’s no point comparing them. Additionally, you need to be mindful of the location as suburbs, even ones very close by, can differ widely when it comes to property prices.
Finally, look at the timeframes. If the house next door sold three years ago for $1 million, it’s not an accurate representation of what you could get for your home now. The housing market keeps changing and you need to read results with this in mind.
Valuations and appraisals
When it comes to the value of your property it’s very important to remember the difference between valuations and appraisals. Property appraisals are educated guesswork, generally provided by a real estate agent. An appraisal can be obtained from several different agents who’ll provide an estimate based on local knowledge of the area and recent sale prices, as well as taking into account current levels of interest among buyers. Property appraisals are not definitive and do not have any legal standing.
Property valuations, on the other hand, are carried out by a qualified valuer and follow a systematic process. Valuers look at the architectural style of your property, land size, aspect and topography of the block, condition, location in relation to amenities, number of rooms, whether there is any renovation or development potential and the size and layout of the residence itself.
If you just want a feel for the market, an appraisal is probably enough. When you’re really serious about selling, it may be best to get a valuer in to give you a more accurate figure.
It’s important to remember that your property value is likely to change as the housing market fluctuates, so you should always seek an up-to-date appraisal or valuation when deciding whether to sell.
How have you found out about the value of your current home? Share your comments below.