How to Value Your Property
Putting a price on your most valuable asset isn’t as tough as you think.
You don’t need an agent to help you find out the fair value of your property. In fact, there are many ways to do it yourself for free!
When it comes to selling a property, pricing your property appropriately is the key to getting the best possible sale price. If you price your property too high, it can languish on the market for months. If you advertise for too little, you risk missing out on big money.
*Psst! Insider’s Tip: Don’t confuse a real estate valuation with a bank valuation, or, a Valuer General’s land valuation. The value placed on your property by the Valuer General (usually the value displayed on your Rates Notice) doesn’t consider the value of buildings on the property, and the bank’s valuation tends to be more conservative to secure a manageable mortgage.
The internet is your best friend
To start your research, we suggest looking at the “Sold Properties” sections on realestate.com.au and Domain. This will give you an idea of how much homes have recently sold for in your area and how long they were on the market. The longer the property was on the market, the more likely their initial asking price was too high.
Another great service that websites like Realestate.com.au and Domain offer are links to valuations – use them. It may also be helpful to compare your price estimate to other sites like www.propertyvalue.com.au, powered by Core Logic RPData – Australia’s leading real estate analytics service. And guess what, it’s free!
Other free sites include www.onthehouse.com.au. They offer instant valuations plus a measure of the accuracy of their estimate. Their accuracy measurement is based on previous property listings in your area and the information provided the last time your property was for sale. If you have renovated your property since you bought it, be sure to update www.onthehouse.com.au’s records and they will amend your valuation accordingly.
If you’re willing to spend a few dollars, you can have your home valued by a professional valuer. A quick Google search will help you find a qualified valuer in your area. This is a very objective way to gain an accurate valuation.
The power of proximity
Take the time to check out properties that are currently on the market. Arrange to view some properties in your area with comparable features to your own. When you visit those properties, try to remove any subjectivity about the way they are decorated, and focus only on the similar features they have to your property, such as a pool or granny flat.
At buyMyplace, we provide our vendors with access to Comparative Market Analysis reports powered by Core Logic, which provide market-based estimates to guide you in determining your property’s value.
Many people also choose to set their property price higher than the true value, with the expectation that buyers will negotiate the price, so it is a bonus if they don’t.
Wrapping it Up
Ideally, you should use a few different techniques to determine a fair and reasonable sale price for your property. However, at the end of the day, the value of your property is whatever a buyer is willing to pay. And remember, the price you set isn’t permanent. Play the market and adjust as you go!