When it comes to finding out the value of your home, there are a number of factors that should be taken into consideration.
The first place that many people turn to work out the value of their property is online. There are plenty of property valuation websites that claim to be accurate, but these should be taken with “a grain of salt” in ascertaining the value of your property.
Property value websites take into consideration general property attributes (i.e. bedrooms, bathrooms, car parking and land size) plus recent sale prices in the area to give you the estimate. While these are very helpful, the data is often old, markets can change quite quickly, and properties vary a lot! Also, the sample size of data these sites extract from can be small and/or erratic, under- valuing or over-valuing your property. For instance, these valuation websites would include sale prices within families, properties with major issues, or unusual properties that are highly sought-after as part of the equation.
There are also a number of other influences you should be aware of with property values:
External influences such as interest rate announcements or government changes to taxes or property incentives greatly influence the property market. These are obviously implemented to stimulate different segments or put pressure on others, creating swift change that can be seen very quickly in the property market.
Supply and demand
Low supply of properties with a large amount of buyer demand pushes property prices up. Conversely, a good supply of properties with fewer buyers pushes prices down. For instance, if there is a large number of buyers in the market for 4-bedroom homes, with little supply of 4-bedroom homes, this competition between buyers will push prices up.
Desirable property attributes
Properties with desirable attributes command higher than average prices. For instance, buyers are more likely to pay a premium for:
- Multiple living areas.
- Outdoor area that includes dining, BBQ and/or outdoor living.
- Pool and/or spa.
- Great views.
- Theatre room or games room.
- Large garaging and workshop space.
- Good quality of materials throughout the home.
- Great quality, well-designed kitchen with top grade appliances.
- Property that is located in the catchment area of a highly desirable school.
The sales agent
Another area of variance is the real estate sales agent who sold the home. Property owners that have done their homework and have chosen an agent that is great at marketing to buyers and is a superior negotiator will gain a higher sale price. Conversely, an agent who is unskilled and inexperienced will negatively impact price.
To get an accurate value of your home, you should talk to an experienced local real estate agent to gain their feedback on the market.
At Harcourts, we have many highly skilled agents on our team. Contact our office on 4628 7444 to find the best agent in your area.