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When it comes to selling, what is my home worth? is the number one question on every home owner’s mind. There are a number of contributing factors which determine the value of your home, such as house design, location, condition, and of course, the current market. However, figuring out how these factors affect the price value can sometimes be tricky if you don’t know what you’re doing or where to look. Well, look no further, because here are five ways to help you find out how much your property might be worth.
1. Focus on your local area
Since location is an important factor in the sale price of a property, it stands to reason that you should only focus on other properties in the same area. If it’s an urban area, check out recent sales within a one kilometer distance, or for more rural regions, you will need to extend it depending on how large the blocks are.
2. Look at similar properties
We’ve all heard of comparing apples to oranges, and that’s exactly what you may as well be doing if you look at properties that are widely different from your own. You’ll rarely find an almost identical match, but there are a few things you can look for to get you as close to the mark as possible. These are:
- Dimensions: this extends beyond just house design. Make sure the dimensions of other properties are similar to your own. This includes the living space, outdoor areas and land size.
- Locality: are these homes within the same distance to local facilities as your own? Travel distance to schools, main roads, shopping centres and public transport all play a role in property value, so be sure to consider surrounding factors.
- Exterior: external features like garages and parking spaces make a big difference to sales prices, so if your property doesn’t offer the same as one down the road, skip it.
- Condition: Modern contemporary homes will generally fetch a higher price than something outdated and in disrepair. Whichever end of the scale your home is at, find other homes in similar condition to yours.
To search for these properties, jump online to real estate websites and search for sold properties in your area, paying particular attention to the above criteria. It’s very important that you compare sales prices and not listing prices, as the listing price is often not a true reflection of a property’s value.
3. Ask an agent
If all of the above sounds like too much work – and let’s face it, we’re all busy and doing these things properly can chew up a lot of your time – then talk to a real estate agent. With their expert eye and property market wisdom, your local agent will able to quickly give you an idea of how much your home might be worth. And the best part is that most agents will do it for absolutely no cost at all.
4. Keep track of the market
The property market climate is in a constant state of flux, so keeping your finger on the pulse and staying current with trends will be a huge help in determining the value of your home. Prices from six ago may quickly become irrelevant, so check in frequently with what’s selling where, and for how much.
5. Get a professional appraisal
It may stitch you up for a few hundred dollars, but hiring a professional appraiser can have its benefits. For example, some real estate agents can give widely differing estimates on their valuations and may over-estimate simply to coax you into giving the property to them to sell. This can be confusing and you may understandably lose confidence in the agent’s ability to sell your home. But hiring an independent appraiser that is familiar with the area will provide you with a comprehensive and professional service you can trust.
Pricing your home either above or below market value can have dire consequences on the sale of your property. For this reason, it’s important to set a realistic listing price, so make sure you have done your homework to give you the best possible chance of a successful sale.