How to Value a Property
Are you wondering how to value a property? Whether you’re looking to sell your home, considering selling soon or are simply curious, there are a few ways to value a property.
Property valuations provide you with valuable insight.
They can show how your home compares in the market whilst also giving you an idea of whether renovations would benefit your sale price.
If you’re wondering how to value a property, or why valuing a property is so important, read on!
How can I estimate the value of my property?
Although you can only truly find out the value of your property from a professional valuation, there are some things you can do yourself to estimate the value of your property.
Focus on your local area
Your area can tell you a lot about the value of your property.
Search for recently sold properties in your area to get an idea of what the market is doing. If you’re located in an urban area, try keeping your search radius small.
If you’re in the country, you may need to expand your radius a little.
Ensure you’re only looking for places that have sold in the last six months.
The more recent the sale, the more accurate the price estimate will be.
Some other key aspects that you need to consider for your local area include:
- Primary and high schools
- Parks and recreation areas
- Public transport
- Shopping centres
- Distance from major cities
- Places of interest (such as beaches, rivers, etc.)
Consider similar properties
Similar properties in your area will be the number one factor when estimating your home’s value.
Checking out similar properties in your area and what they’re selling for will give you the best indication of what your property is worth.
When looking at a comparable property, you’ll need to consider the following:
- Property type (e.g., house, townhouse, strata title, etc.)
- Land size and location
- Market trends (current and historical)
- Property characteristics (e.g., number of bedrooms, bathrooms, garages, and the size of the property’s carbon footprint etc.)
- Condition of the house (e.g., brand new, fixer-upper, year of build etc.)
Check the ‘recently sold’ section of real estate sites
While it’s great to compare similar properties on the market, a better indicator is the ‘recently sold’ section of real estate sites.
In these sections, you can search for recently sold properties in your local area.
To get the most accurate estimate, apply relevant filters to your search.
This includes filtering for similarities like:
- Property type (e.g., unit, house, townhouse, etc.)
- Land size
- House configuration (e.g., number of bedrooms, bathrooms, etc.)
- House condition (e.g. brand new, fixer-upper, recently renovated, etc.)
Adding these filters to your search enables you to find the most accurate estimate.
Compare property features
Once you’ve gathered this information, it’s time to compare the properties to your own.
The data you’ve collected should give you an idea of how similar the recently sold properties are to your own.
Be harsh with your criteria and ensure you exclude any properties that don’t match yours, as they may not be entirely accurate.
Watch the market
Observe the market over time to discover any changes.
The housing prices from six months ago might not be relevant anymore – even if a property was almost identical to yours.
The market can change quickly, so going to open houses and auctions can also help you to get an idea of the demand.
Use Inovayt’s free property report valuation tool
Another way property owners can estimate the value of their homes is by using Inovayt’s free property report valuation tool.
By entering your address, you’ll receive a property valuation estimation.
What are the benefits of Inovayt’s property report?
- Access property information throughout Australia to better understand the ins and outs of your property.
- Understand estimated property values and home loan repayments based on sales and market data.
- Access property information within your local area to understand the market.
- Find out more details such as build date, property type, square footage, number of bedrooms, bathrooms, and car spaces.
What information does the report give me?
Within your property report, you’ll find the following information:
- Estimated property value
- Property sales and rental history
- Market trends in your area
- Sales and growth charts
- Sales activity
- Area characteristics
Why is knowing the value of my property important?
There are many reasons why you should know the value of your property – it’s not something you should consider only when you’re selling.
Some of the main reasons include the following:
When you’re buying a property, you may not consider having it valued.
However, getting a home valued before you purchase it will provide insight into whether the property is being priced correctly or you’re paying too much for it.
Like buying, when you sell your property, you want to ensure you’re getting the best price for it.
Having it professionally valued by a bank or real estate agent means you’ll get the best possible price for your house.
Do your research into which valuer you use, though, as you don’t want your home to be marketed incorrectly.
Home and contents insurance is something that all homeowners should have.
This insurance gives you adequate coverage in case the worst were to happen (fire, floods, burglary, etc.).
When you’re renovating, knowing your property’s value and current market trends can be a huge help.
By knowing what customers are in the market for, you may be able to capitalise on this when completing your renovations.
By knowing the value of your property, you also can better understand areas that may not change the value of the property so you can avoid wasting money.
If you decide to get a professional valuation done before renovating, you’ll receive more detailed information on where your money will best be spent.
Knowing how much your property is worth is a crucial part of retirement planning.
Regardless of age, thinking ahead to your retirement allows you to make informed financial decisions to set you up for the best possible retirement.
How can Inovayt help me value my property?
An Inovayt financial broker helps to play a significant role in the property valuation process.
No matter where you are in your property journey, we empower you to make confident, realistic decisions to meet your financial goals.
We work with you to determine your property’s value using our knowledge, tools, and experiences.
Our team are determined to help you understand the importance of valuing your property and how it will benefit you.
If you’d like to learn more about the value of your property, get in touch with an Inovayt mortgage broker today.