How much is your property worth?
If you’re looking at a sea-change or downsizing because of an empty nest, you need to know how much your property is worth. This helps you aim for the next stage of your life and determine how much you can spend.
When you get that spark, that want to sell, you need a property valuation. This article will be a rough guide to what you could get when you sell your house. There are many factors to consider when evaluating a property, and we’ll walk you through them now.
How to estimate your property’s value
Knowing what is going on around you in your local neighbourhood and the suburbs next door is a great way to judge the value of your own home.
Check surrounding property prices
You can easily check the sales prices of houses around you using Domain, Realestate.com.au, onthehouse.com.au and more.
You will likely need to create an account and expect ongoing marketing from these websites.
Look at recent local property sales
Investigate what a house was listed for and what the house eventually sold for. As the property market was heating up, the trend for many years was that houses sold well above their reserve price. So you could evaluate your house quite generously.
If you do this research over a few months, you can potentially find an upwards or downwards trend.
Compare features with local property
During all of this, you need to remember that a four-bedroom house with two bathrooms is going to be valued higher than a two-bedroom unit with only one bathroom.
Always try like for like- the same number of bedrooms, car parking spaces and land size. While not one property is exactly like another, you can begin to get a ball-park figure of what your house is worth on the market.
How is your property’s value calculated?
Despite all the variables, agents have some tried and true methods of doing a property appraisal and finding the value of your home.
Location
A lot of value can be attributed to location:
· Is the house close to schools?
· Is it close to public transport?
· Vicinity of parks and recreational areas.
· Is it in town or rural?
· Is the town in a growth corridor?
· If the location is rural, is there a growing demand for that location?
Many people moved out of the cities during covid, driving up demand, and prices, in key rural locations. Warragul and Drouin saw the 3rd highest population increase in Victoria, from mid 2020-mid 2021 the population increased by 4%.
Property Condition
Another factor in determining the value of your property is what kind of condition it is in:
· Is the property a bit run down and in need some cosmetic fixes?
· Are there some serious issues that need to be addressed?
· Has the property been recently renovated and is it in mint condition?
The better the property's condition, the higher the value put upon that property.
Size
In real estate, size does matter. The square metre of both the living space and the block on which the house sits all add to the value of the property as a whole.
Some people are looking for more squares in the living area; others may be looking for a good block to develop. So, the value can change for different buyers.
Layout
This element of the value can be so subjective. A natural flow to the house, with living and dining and kitchen all connected is good.
Some people like all the bedrooms grouped together, while some may prefer the main bedroom apart from the kids’ bedrooms.
If your property is in a good location and has potential, the layout will probably not matter too much to a keen buyer.
How can you add value to your property?
There are ways to increase the value of your home. Some won’t cost you much. Others you could consider an investment that will pay out well by giving you a bigger return on the value of your home. Your agent at the appraisal appointment will be able to advise on what could be done to improve the presentation of your property.
Paint interior and exterior
A fresh lick of paint can do wonders for the value of your home. It will make your property look new and revamped.
Interior painting is the easiest to do. Paint with neutral and light colours only. This allows potential buyers to imagine brighter colours and a palette that suits them. Don’t paint feature walls, as then you’re imprinting your style upon someone else.
Exterior paint can brighten up the look of your home from the street. Again, neutral colours work best. See what other houses are painted like and be just a little bit different with your palette.
Install appliances
Appliances can sell a home, especially in the kitchen. If someone can walk in and not need to update appliances, that raises the value in their eyes.
A dishwasher is essential, so too a good oven and cooktop. A new fridge is optional, but again, if one is supplied, it is something that can be written about and help sell the property.
If someone sees the words- fully renovated kitchen with modern appliances, you will hook their interest.
Landscaping the garden
Much like painting the exterior of the house, landscaping can add value purely by looking good.
You can simply clean up and prune the garden that is already there, or you can invest more money to totally remodel the garden into something modern and sophisticated.
Street appeal, as in how a property looks from the street, adds great value to the home.
Interior Design
When selling a property, you want to enable people to imagine themselves living there. How you stage the house is important. You don’t want to crowd the interior, but you won't want to have it bare either.
You could hire an interior designer to stage the home for you. Again, this is one of those investments that can add value to your home, increasing the sale price through aspiration.
How to determine your property’s worth
You may have done the research, and searched online for houses in your area that have sold recently. You’ve added a coat of paint and tidied up the garden, but are you sure about what your house is worth?
Property Appraisal
A property appraisal estimates the price your property would reap in the current market.
Real estate agents do this appraisal by conducting a comparative market analysis on similar houses for the past 90 days.
They consider property size, property type, land size, how many bedrooms and bathrooms it has, all the fixtures and fittings, the location, and so on.
Property Valuation
A property valuation is usually performed by a Certified Practicing Valuer for a fee. They are not associated with any real estate agency, nor are they real estate agents themselves.
A property valuer will inspect the property themselves, do thorough research and analysis into the local housing market and give you a detailed report showing the current market value of your property.
What is the difference between a valuation and appraisal?
A bank or other financial institution usually requires a property valuation prior to approving a home loan.
Buyers also use it to get an independent opinion prior to listing a property for sale.
As a qualified valuer conducts valuations, they can have legal standing in a court of law.
Real estate agents do appraisals to give you an idea of how the market is and what you may get for your property. As it is just an estimate, it would not have legal standing in a court of law.
Request an appraisal with One Agency Country to Coast
One Agency Country to Coast service West Gippsland, Bass Coast / Phillip Island and parts of Cardinia Shire and South Gippsland. We are the number one agency in Warragul and across West Gippsland. We value our customers and work with them to bring the best outcomes for the sale of their property whilst saving them money on commission fees.
If you’re looking to sell and want an appraisal from one of our highly experienced team, fill in a request form, and we’ll arrange to meet with you soon.
Speak to you soon!