Thinking about selling your home? To kick off the process, you’ll want to find out how much your property is worth. Ultimately, you’ll want to find a source that can give you the most accurate valuation for the best price. It’s a good idea to do your own research too.
Familiarise yourself with your local market so you’re not going into the process relying on one source only. Here’s how you can get to know the value of your property:
1. Online valuations
There are a few sites offering free online property valuations. These sites are a good initial step if you’re looking for a rough estimate of your property. Reports from sources such as RP Data and Residex can give you general insight into property data. But remember, they are not a substitution for a professional’s assistance. These sources won’t be able to give you specific information about a property’s true condition or it’s value in a way that a real estate agent can. Nor will it have the kind of insider information that a local agent can give you. Many important variables that can affect a home’s value are only noticeable during an in-person inspection. So, online reports should only be used as a general guideline.
2. Valuation by licensed professional
Getting a professional in to give you an unbiased, accurate view on the value of your property is a good option, but will come at a small cost. Professional property valuers are independent parties who have no direct financial stake in a property’s sale. Their valuations are legal documents, so they can be used for negotiation or litigation down the road if necessary. There are a variety of factors that can affect the cost of this service: the type of home being evaluated, the format that is used and the reason for the report. A legal valuation report could cost as little as $300 (plus GST) in many Australian metropolitan areas, but bear in mind that this will vary depending on the factors mentioned above and the complexity of your situation. If you need a valuation report for non-legal reasons, these can be completed in a short time period for a standard urban or suburban home. You’ll want to be sure that you choose a valuation expert with the proper qualifications. In many cases, your real estate agent will have professional connections with independent valuers. They’ll be able to help put you in touch. Be sure that your valuer has specific qualifications attained via tertiary level studies along with a license or registration from the appropriate state body. You can expect to pay around $300 for a professional to come to your property and give you a property valuation.
3. Using a vendor advocate
Another option is using the services of a vendor advocate. They’ll gather information from a few real estate agents and an independent valuer to determine a likely estimate for the value of your home.
4. A local real estate agent
As a part of the services provided by a real estate agent, they’ll come to your property and give you a free property appraisal. (This is an estimate of the value of your property). The real estate agent will generally offer this appraisal for free so they can build a relationship with you. Real estate agents tend to focus on one specific area, and with that, develop deep knowledge of the local market. A good real estate agent will also know exactly what buyers in your area are looking for as they’re talking to them all the time. So, they’ll give you an appraisal but can also suggest ways to help to bump up the value of your property ahead of hitting the market. A good real estate agent will also look at the number of sold properties in your area and the general inventory. They should have viewed many of these homes if they specialise in your neighbourhood. And they’ll know how your home measures up. Other factors that may weigh into the home’s value could include your property’s curb appeal. Furthermore, it’s access to local amenities, decorations, and move-in readiness.
5. What’s the importance of an accurate appraisal or valuation?
If the house price has been set too high, you may not receive any serious offers. This could lead to your home being on the market for a longer time period, which may scare away further buyers who may believe that something is inherently wrong with the property. As well as thinking that there is something wrong with the home, buyers may bargain for a lower price or refuse to pay market value on homes that have been on the market too long because they (rightly) assess that the seller is desperate for a sale. Yet there are also dangers in setting the bar too low; a low price could scare away buyers who may perceive that the property must have flaws or imperfections. A good real estate agent will be able to prevent both of these scenarios by helping you set the listing price as realistically and accurately as possible.
6. Factors that affect the value of your property
Factors such as your home’s square footage, the quality of fixtures and the number of appliances will all weigh into your property’s current value. However, there is far more that goes into this price. Your real estate agent will be able to help you compare your home to recently sold properties in your area, looking at further features such as the size of the lot, the home’s amenities and its location. Home improvements, upgrades, repairs or extensions could also add to the value of your property. If you have made any home improvements in recent years, be sure to let your agent know about these so that they can factor this into the appraisal. The neighbourhood itself will also factor into home values. Are there shopping centres, supermarkets, schools, parks, and hospitals nearby? Convenient public transport links and vicinity to metropolitan areas will all affect home values, as will crime rates and traffic levels. Lastly, it’s important to look at the current market in your neighbourhood; whether it is saturated, scarce or somewhere in between.