Considering the state of the property market, you wouldn’t be alone if you’ve been researching terms like “how much is my house worth” – but what’s the answer?
Even just two short years ago, Australia’s real estate sector has continued to surprise us all. Despite fears that the global pandemic would send our nation’s property market into a tailspin, the reality is that it seems to have done quite the opposite. With a change in spending habits, record low interest rates, and an almost global desire to reassess our day to day lifestyles, Aussies have embraced real estate in record numbers.
Nationally, home values are currently up over 20% when compared to the same period just twelve short months ago. However, the latest forecasts have hinted that the skyrocketing prices have begun to stabilise. Depending on which side of the buying or selling fence you sit on, this news will either bring excitement or deflation. As such, even those who have no interest in selling in the immediate future have found themselves questioning their property’s value, and Googling questions such as “how much is my property worth” – but is there a black and white technique available to determine this?
How Property Value Is Calculated
Whether we like it or not, property value is an important pillar of real estate. For sellers, it helps to set a sale price that isn’t too high and can potentially scare off potential buyers, while still ensuring that you’re not setting yourself up for a loss. On the other hand, understanding property value as a buyer is crucial when it comes to identifying a bargain and a worthy investment, along with not purchasing a dwelling that may leave you worse off in the long term.
Owning a home is likely to be the greatest financial asset that many of us will have over the course of our lifetimes, so it’s important to do everything in your power to at least try and put yourself in a favourable position. As such, determining a property’s value can be done in a number of ways.
Use An Online Estimator – While not regarded as necessarily the most accurate form of calculating a property’s value, using one of the many online estimator tools is a great way to get a rough idea if you’re feeling curious, but aren’t ready to invest in a full evaluation. While RealEstate.com and many of the major lending institutes offer these types of tools, be sure to take them with a grain of salt – there’s lots of variables involved with property value, and online estimators are just that: an estimate.
Enlist A Real Estate Agent – If you’re looking to potentially sell your home, many real estates will offer a free property value report on your behalf. While they will conduct a comparative market analysis on your property to show you what similar homes are selling for in your area, they will also often come and visit in person to assess any physical variables that may increase or decrease the value of your home. The downside is that they ultimately want your business, so sellers should be wary of enthusiastic agents who may overvalue as a sales tactic.
Hire A Professional Appraiser – While the assessed value of a home refers to the tax value of a property – or what a real estate agent often does – the appraised value is determined by a separate property appraiser, who takes various features pertaining to the property into account, including things like the type of construction, the size of the property, the condition of the property, its location, and recent sales of comparable properties within its vicinity. They’re also considered to be unbiased, and can protect buyers against inflated sale prices.
Like most things, knowledge is power when it comes to real estate. Once you have your hands on an in depth report that covers how much your home is actually worth, it then puts you in the position to make relative changes as a means to lift your property value, and ultimately command a higher price in the event that you eventually sell your home.
Should you be looking to sell your home or purchase a new one, enlisting the services of a free property advisor like ESPA can often be a game changer. As an example, your advisor would likely research the property, local agents, check the zoning, evaluate market conditions, and communicate clearly with you regarding all of your options – but where do you find one?
Take The Stress Out Of Selling Property
As a completely free service, Emergency Services Property Advisors provide property advisor services to Police, Fire, Ambulance and S.E.S personnel and their families right across Victoria.
Luke and the team at ESPA are passionate about providing support to some of Australia’s most valued public servants. Along with key industry insights, ESPA also works with a broad range of service providers linked to the real estate industry such as conveyancers, trades, legal practitioners and mortgage brokers.
If you are an emergency services worker looking to potentially buy or sell property in the future, please get in touch with Emergency Services Property Advisors today to discuss how we can turn your real estate dreams into reality, or call Luke directly on 0414 757 705.
