When it comes time to sell your property, one of the most important things to consider is property worth. You want to ensure your property value is in line with current market conditions so you can achieve the highest selling price possible. Today we’re going to deep dive into how you determine property worth and how to obtain a property valuation.
What factors influence property values?
There is so much property data plus market insights to consider when determining a property’s worth, including:
- The property’s land size and floor plan, including the number of bedrooms and bathrooms.
- The property’s age, condition, street appeal, structure and features, such as fixtures, fittings and exterior.
- School zone boundaries, plus local council restrictions and zoning.
- The location and neighbourhood, like its accessibility to essential amenities, including schools, shopping centres and public transport.
- Current local property market conditions, recent sales data and rental history (within the last 90 days) to see how it compares to similar properties in your local area. The closer they can match your property with similar counterparts, the more accurate the appraisal.
- Deterrents, like being in a flight path or located next to motorways or train tracks.
- Current and historical greater real estate market trends (a.k.a city, state and national trends).
- The time of year you’re selling the property.
- The current economic conditions (we’re looking at you, interest rates).
How to get an accurate estimated value of your home’s worth
Now, there are three main ways to receive an estimated property value:
Free property appraisal from a local real estate agent
Local real estate agents can visit your home and provide you with a free property appraisal based predominantly on the information listed above. There are a couple of reasons why this is a good option:
- The agent can estimate how long it will take your home to sell based on current market conditions.
- A property appraisal can also identify ways you can add value to your property before selling and whether renovations are worthwhile.
- The agent can help you determine your home’s major selling points and how you should highlight them when selling, in the hopes your property sells for a higher price.
Related: What is the purpose of a real estate appraisal?
Free online property valuation
LocalAgentFinder has a free online property value estimate tool. There are a few factors we consider before determining the property estimate:
- Recent sales data. This comparable trending data over 12 months includes median sale price, the number of properties recently sold and how long they spent on the property market.
- Suburb statistics. We also provide information regarding your suburb’s real estate trends, like growth statistics and the most common type of property sold.
- Property features. We also take into account your house’s features, type and condition.
Our online property valuations are based on an automated valuation model estimate (AVM Estimate). This compares data from CoreLogic (the leading property data provider in Australia) with your property itself to calculate an estimated value range and our confidence score regarding the possibility of selling within that range in current market conditions. Try it for yourself today.
Professional property valuation
A professional valuation is different from a property appraisal, as a formally qualified valuer completes the task. They take the factors listed above into account, like location, the property type, structure, condition and features, and local council zoning restrictions to estimate the property’s value.
After they inspect the property and analyse the market and all available data, they provide a detailed legally-binding report. In contrast, a free property appraisal isn’t legally binding. A professional valuation is for scenarios like property settlement, obtaining a home loan and dispute resolution.
Related: What is a property valuation and why should I get one?
Why should you determine your property’s estimated value?
A house price estimate is the best way for you to know your property’s value. Once you have this important information, you can decide your next steps. Whether that’s to do minor renovations to increase the property value, sell your house or wait to sell until the market improves. Basically, it’s the best freebie in real estate.
Why is my estimate inaccurate?
Both online property valuations and in-person property appraisals can only use available data, so the estimated value may not be an accurate representation of your home’s market value if there isn’t enough data available. This might be because your home is very unique, property data points are missing (like the home’s land size or floor plan) or there aren’t any comparable properties as you reside in a newer suburb.
The benefits of working with a local real estate agent
There are several benefits to working with a local agent concerning both a property appraisal and then selling your home:
- A local agent will have intimate knowledge of your suburb and will probably have sold similar properties, so they will confidently know your home’s estimated market value.
- They will also have an understanding of local and greater real estate trends, so can advise you on the best time to sell your house.
- They will know the best selling method to use in the current market, whether that’s a private sale or at auction.
How to add value to your property
If you want to boost your property worth, there isn’t a lot you can do regarding your home’s location, aspect and age. However, here are some ways to add value to your home, particularly if you live in Australia:
- Functional outdoor living spaces, whether that’s built-in furniture or a barbecue, a deck or a pergola.
- Adding space via a granny flat, a detached studio or office, or a rumpus room. Adding space and size equals adding value.
- Focus on curb appeal because first impressions last. This means everything from the walls to the front door to the garden, roof and fence. Nothing is off-limits.
- Sometimes minor updates can equal major improvements money-wise. For example, updating fixtures and lighting, re-painting walls and polishing floorboards.
This is a great time to do a property search and analyse similar properties in your local area to compare your homes and determine what you can do to increase your estimated property value. This is also when a local agent is beneficial, as they can provide helpful market insights and recommendations.
Related: What adds value to a home in Australia?
Ready to know your worth and place your home on the property market?
Head to LocalAgentFinder for the next steps:
- Use our free online property valuation tool.
- Book a free property appraisal with a local real estate agent.
- Find the best agent to sell your home, if you determine that’s the next course of action.
LocalAgentFinder is truly a one-stop shop for all your real estate and property valuation needs.