If you are an investor, the magic formula for any investment property is high...
How to Value Your Property
Putting a Price on your most Valuable Asset
You don’t need an agent to help you find the correct value for your property – In fact there are many ways to do it yourself for free. Finding the right price for your home is essential when it comes to selling, because you need to find the best sale price on your property. Too much, and it can languish for months on the market, and too little might see you missing out on money.
Firstly don’t confuse valuation for sales purposes with a bank valuation or Valuer General’s land valuation. They are not interchangeable as the Valuer General’s doesn’t take into account your home or buildings, and the bank’s tends to be more conservative to secure a manageable mortgage.
In the first instance, you should look up realestate.com.au and domain.com.au sold listings to ascertain what homes have sold for in your area. You can also see how long properties were for sale. In the current market, the longer they were for sale, the more likely it is their initial asking price was too high.
This sites often have links to valuations. Use them. Also compare the price to other sites like www.propertyvalue.com.au, powered by Core Logic RPData, Australia’s leading real estate analytic service. There is no cost to this technique.
There are also other free sites such as www.onthehouse.com.au for an instant valuation. They will even give you an idea of how accurate theirs is, based on descriptions used the last time your home was on sale, so be sure to check they are correct. If you have renovated since purchase and update the record Onthehouse.com.au will amend its valuation accordingly.
Take the time to check out what is currently on the market too. Arrange to view the ones in your area with comparable features to your own. Unless they are very dated, and yours is flash and modern or vice versa, try to remove any subjectivity about the way they are decorated, and focus only on like-for-like features like pool or garage.
If you list with buymyplace.com.au, you can have access to the valuation service we use which is
powered by APM – the same subscription-based service used by traditional agents.
If you are well to spend a few dollars, you can have your home valued by a professional and can find a reputable local valuer with a quick Google search. This is a very objective way to gain an accurate valuation.
It is ideal if you can use a couple of techniques and find a good middle ground if you are setting a sales price. Ultimately though, the value of your house is what a buyer is willing to pay. Many people also choose to sell at a figure higher than the true value with the expectation that a buyer will negotiate the price down – and it is a bonus if they don’t!