If you’re considering selling your home, you’ve probably asked yourself, ‘How much is my house worth?’ Not only will thorough property research help you to decide whether or not it’s the right time to sell, but it also means that you can go into negotiations with real estate agents feeling confident that you’ve done your homework.
Here’s a starting guide to estimating your property’s value:
Look at recently sold comparable properties in your area
Since location and access to facilities all factor into a property’s value, it’s essential that you look at homes that are as similar to yours as possible and have been sold recently (within the last six months or so). Take a look at sold listings on sites like Domain and Realestate.com.au and make a list of comparable properties and their selling prices.
Compare and rate features
It’s unlikely that you’ll find examples of homes that are identical to yours. However, you can use certain features to rate your home against similar properties. This means looking at properties with a similar:
- Number of bedrooms and bathrooms
- Style of building (for example, heritage or new build)
- Land size and size of the property itself
- Condition and state of repair – is it in need of renovation? How up-to-date are the fittings and appliances?
- External features like a garage or off-road parking, swimming pool, and gardens
For example, let’s imagine that your home is a Victorian terrace similar to another that sold across the road, except that one has a much bigger backyard and rear lane access. This might mean that your property might has a lower market value. On the other hand, if that place is in need of updating and yours has been recently renovated, your property could have the potentially to sell for a higher price. In any case, a valuation at this stage should be treated as a ballpark figure.
Track the property market
Comparing one property versus another will always be a case-by-case issue, so it’s important to be aware of the market in your area and what buyers are looking for property in your neighbourhood. That means keeping an eye on how long different types of properties take to sell, as well as auctions in your area.
In addition to routinely reading property news, you can also use tools like the CoreLogic Home Value Index, which tracks monthly fluctuations throughout the country. An increase in average house prices in your area will typically equal an increase in the market value of your property as well.
What factors influence property value?
There are many factors at play in determining a property’s value, which is why it’s an art that’s best left to the experts. However, if you want to get a general feel for the potential value of your property, consider the following:
- Whether it’s a buyer’s market or a seller’s market
- Current interest rates and home loan restrictions
- The overall economic outlook
- The current state of the property market and average property prices
- Projected population growth in your area
- Land and property size
- Property condition and renovation potential
- Location, street and curb appeal
- Number of bedrooms and bathrooms
- Energy efficiency
- Outdoor features like a swimming pool and landscaping
Common property valuation mistakes
There are some common traps people fall into when trying to work out the value of their home. These include:
- Comparing dissimilar properties, or properties sold too long ago
- Not being up-to-date with current market trends
- Valuing a property based on an emotional attachment to it
- Comparing with properties currently on the market – remember, the market value is the only good indicator of value, not price guides of properties yet to be sold.
- Using unreliable sources of information, instead of trusted industry publications like CoreLogic
How much is my property worth?
The property market is unpredictable, and the reality is that the only way you’ll ever know exactly how much your property is worth is when someone buys it. However, getting an expert real estate agent’s opinion is a good way to gain an understanding of the current value of your home and help you decide if it’s the right time to sell.
A real estate agent will also be able to interpret finer data points, such as how many days a property was on the market before selling, the median house price in your area and where your property sits in relation to it, as well as auction clearance rates, which gives a good indicator of how much demand there is for property in your area.
With Upside, there are two ways to find out the value of your property for free:
Type in your address and find out the estimated value of your property in 30 seconds. The Upside Property Report gives you an in-depth understanding of your property and the market with comprehensive data including property value estimates, comparable sales and historical suburb performance.
One of our experienced local agents will visit your property, and, using recent market activity, will provide their view of a possible selling price. They'll also walk you through how our selling process works, and what’s included in our fixed fee service.