Are you planning to sell your home? One thing you’ll want to know then is how much your property is worth. But getting an accurate assessment is no easy feat. There are many factors to take into consideration from where your home is located to its condition and how the overall market is doing.
Knowing the value of your home is important for many reasons. If you price it too high, then you scare off potential buyers. That could leave your home sitting on the market too long. On the other hand, selling too low means getting a smaller return. So you’ll need to strike a balance and price your home at the right value so you can entice potential buyers.
Even if you don’t plan to sell, an assessment of your property can tell you whether your investment has risen in value or how much you could potentially rent for. Here we’ll look at several strategies for estimating the value of your home.
Look at Local Property Values
Looking at properties in your area is a good starting point. Sites like PropertyValue.com.au and RealEstate.com.au let you see how much houses have sold. Simply enter an address or postcode. You’ll then be able to view details for individual listings like its estimated value, comparable properties, and even if any home improvement work has been done.
Look at property sales within 1 km of your home if you’re in an urban area or expand the parameters further if you’re in the countryside. It’s also a good idea to pay close attention to when the sale was made. Ideally, you want to look at home sales that were made in the last 6 months. By looking at local property values, you can see how much properties similar to yours have sold for.
Speak With a Real Estate Agent
Attempting to value your own home will only give you a rough estimate. Real estate agents use a similar process when determining the value of a property but are much more experienced and have more market data to work with. Some property valuation sites require users to pay for more detailed reports. But agents more than likely already have access to this information, especially if they work for a large agency.
If you’re serious about selling your home, consider speaking with a real estate agent. Not only will you get a more accurate value of your property but an agent can also advise on how the overall property market is doing. That information can tell you whether it’s a good time to list or if you should wait instead.
Get a Property Appraisal
A home appraisal is a much more extensive process to assess the value of a property and is often used by lenders for the mortgage loan process. Appraisals are conducted by licensed professionals who look at all aspects of a property including:
- Square footage
- Number of bedrooms and bathrooms
- Exterior and interior condition
- Home improvements and additions
Prices can vary but you can expect to spend several hundred dollars or more for a professional home appraisal. Getting your property valued can give you a better idea of what to list your home for. But ultimately it all depends on the market.