From planning on selling your property, through to investigating refinancing and simple curiosity, there are times when you would want to know the value of your property. However, it’s not always a straightforward process. In this article we will cover the basics of how you can figure out the value of your property.
Understanding Property Valuation
Property valuations are more than a guesstimate. While they are supported by an extensive set of data, they are ultimately still estimates. The true value of your property is always what buyers are willing to pay for it.
However, that doesn’t diminish the importance of property valuations when it comes to marketing your property or refinancing your mortgage. Or even when you’re considering renovations to your property.
Methods of Property Valuation
There are several ways to get an estimate of what your property is worth. Here are three common methods:
1. Professional Property Valuation: This involves hiring a professional valuer who will carry out a thorough inspection of your property. They will evaluate the age, size, layout, and condition of your property, any recent renovations or improvements, the location and local amenities, and also consider the recent sale prices of similar properties in your area. They will also look at new developments that are either planned or in progress. This is the most accurate method but there are costs involved.
2. Free Property Appraisal: Most real estate agents offer free property appraisals as a service to potential clients. These aren’t as comprehensive or precise as a professional valuation, but it does give you some idea as a starting point. Keep in mind that appraisals can be less conservative than professional valuations when estimating a property’s value.
3. Your Own Research: If you’re not quite ready to engage professionals, you can conduct your own research. When researching your own property valuation, you can either piece together information from multiple sources, or use Archistar. With Archistar, you can easily access the latest information on the market, median prices, sold properties, and even nearby developments.
Tips for Your Own Research
- You want data from multiple sources for a broader perspective. Archistar brings together data from Domain, CoreLogic, and BCI Australia.
- Make sure to compare properties similar to yours in terms of size, age, and features. Don’t focus only on the interior; the exteriors of the properties are just as important.
- Concentrate on your local area and sales within the last six months.
- Stay current with the property market trends.
Mistakes to Avoid
- Don’t assume improvements made to your home will directly increase its value by the cost of those improvements.
- Don’t look at properties currently on the market. The list price isn’t always what the property eventually sells for.
- Avoid getting emotionally attached and stay objective to make accurate comparisons.
Understanding The Australian Property Market
Like any market, the Australian property market is influenced by supply and demand. It’s not uniform across the country, so values will vary dramatically from one area to another. Factors such as employment rates, population growth, interest rates, and government policies can all affect the value of your property. Meaning it won’t stay the same.
It’s important to remember that your property’s valuation is in no way indicative of the market value. The market value of your home will always be influenced by broader market conditions and what buyers are willing to pay.
Figuring out how much your property is worth can seem complex, but when you understand the factors that influence it and the tools you can use, you can gain a clearer picture. Create a free account on the Archistar property platform to immediately access select information on sites, including your own property. You can also preview premium features to see if Archistar is the right platform for your needs.