If you’re thinking about selling your property, then it’s important to know what it’s worth. It’s also vital that you have an understanding of the current market so that you price your property accordingly. Otherwise you risk selling your home for less than its market value, or worse still scaring off any potential buyers with a much higher price.
Often when you put your house on the market, your real estate agent will pull-up sales data of similar properties in the area, then they’ll discuss this data with you so that together you can determine the value of your home. While this is a traditional method of valuing property, and not necessarily a bad way to estimate the price of your property, it may not be the most accurate. So to confidently determine exactly what your property value is, there are a number of actions you can take. These are as follows:
1. Get an independent property valuation – There are a number of sites and services that allow you to get a personalised property valuation. Before listing your property on the market, contact three real estate agents. Tell them that you’re thinking of selling your property and ask them to come and appraise your property. Most agents will give you a ‘free’ appraisal, but always ask about fees before you invite them around to your home, just to be safe.
There are a number of websites that can offer you sales data reports and a home valuation. These sites typically charge between $50 to $100 per report. Some of the most reputable sites are CoreLogic RPData’s ‘Property Value’ site and ‘OntheHouse’. These sites give you fairly accurate data based on current market analysis. But, it’s important to remember that websites typically focus on broad market knowledge and data, not local. This is why it’s important to also get a valuation from realtors in your area who understand the local market and how home values are constantly changing and fluctuating.
2. Look at local sales data – Sure a real estate agent will give you recent sales data for your area, but this may only be a snapshot. So rather than relying on a realtor’s information, go and have a look yourself. When looking at data bear-in-mind that you should give yourself a 2.5% margin either way of a suggested value.
To find sales data visit realestate.com.au and Domain. When you go to these sites, click on ‘invest’ and ‘sold’ to review sales data. Then enter in your suburb details to find homes in your area that are similar to yours. For instance, if you have a 4-bedroom home with a games room and formal lounge, as well as an in-ground pool, and a 20×40 shed, then find a home with similar features. Don’t compare your home to a 6-bedroom mansion or a 3-bedroom courtyard property.
3. Know what creates value in your property – Typically when a real estate agent values your property they’ll look at your home’s size in square metres, the number of rooms your home has, land size and features, such as the quality of fixtures and fittings, the number of bathrooms, carports, garaging, swimming pools and outdoor entertaining areas. Air conditioning, solar power and other modern conveniences can also add value to your home.
4. Your home is worth what someone wants to pay – By putting your home on the market at the top-end of its value, this may allow you get a higher price. To know what your pricing scale is, look at all of the data you’ve collected and work out a price range for your home. Start high and then reduce your price over time, if you haven’t had any interest in your property.
5. Know what price you need – Often you’ll need to get a certain price for your property so that you can affordably buy your next home. So before you put your home on the market, work out what you need financially to purchase your next property. It’s also a good idea to get a free home loan report before you sell. This will allow you to get the lowest interest rate, access your borrowing power and to ascertain your loan repayment amounts. To get a ‘free’ report visit eChoice.
According to CoreLogic RP Data, auction clearance rates in Australia are at their lowest since 2012. The combined capital city clearance rate fell to 62.1% over the December 2015 quarter from 73.4% in the previous quarter. Sydney auction rates dropped to 59.8% down from 76.3%. However, Adelaide, Brisbane, Canberra and Melbourne all recorded higher clearance rates. These rates signify that while real estate sales are cooling in some areas of Australia other areas are showing strong performance.
Are you thinking of buying a home? Then contact eChoice and find the right home loan for YOU today.