If you want to sell your home, the first question you’re likely to ask is: “how much is my house worth?”. The problem is that it’s hard to accurately assess because there are a whole raft of factors affecting the value of your home. The supply and demand of homes in the market, the location of your property, its aspect and position on the street, its proximity to shops, cafes and good schools, off-street parking, and building overlays are just some of the things that will affect your home’s value. And knowing exactly what bearing each factor has on your property’s value is even harder.
Online house valuation tools and doing your own research
However, it’s not impossible to get a ‘feel’ for what your property might be worth by using online tools and your own research. For example, realestate.com.au has a useful tool that gives you key details and sale prices for properties across Australia here. It’s worth noting that this tool, and others like it, have limitations because they provide automated valuations based on available data, and if the data is incomplete or wrong, then the valuation is likely going to be inaccurate.
A better way than using automated tools is to dig a bit deeper yourself. The key thing to remember when trying to value your home yourself is to look at comparable properties. Ensuring the location, size, number of rooms, and quality of the property is as close to your own home as possible means you’re more likely to get a better idea of your property’s value. And the figure that you want to focus on is the amount a comparable property actually sold for (ideally within the last 3–6 months), not current listings that aren’t sold yet. Doing this will provide you with a more accurate valuation because there’s a world of difference between a listed price and what someone will actually pay for a property.
Yet in reality, arriving at figure that truly reflects your home’s actual worth by yourself is very difficult, because property valuation is complex and most people lack the objectivity, professional skills, and real estate experience to navigate it properly. It’s also worth remembering that property professionals use specialised and costly databases to thoroughly understand what’s happening in the market. So, if it’s difficult for you to assess what your house is worth, then how can you get a home valuation?
Home valuation — how it works and who can help you
The two main evaluations used to assess how much your house is worth are an appraisal and a valuation. Both are quite different.
An appraisal is a service offered by real estate agents to give you an indication of your home’s value based on comparable sales and their experience of the property market in your area. A good agent, who really understand the complexities and different dynamics of the local real estate market affecting the asking price on your house, can be exceptionally useful in helping you achieve your target figure. While most will act in your best interest, some unethical agents will inflate your home’s price in the hope that you will appoint them for a sale, and then talk you down on price afterwards. Therefore, it pays to do some research and get recommendations on agents with good results and reputations.
An independent valuation is a service offered by a qualified property valuer to assess the value of your home. Property valuers are skilled professionals who have had to study their craft and must hold a Certified Practicing Valuer accreditation in order to work. Their job is to conduct a thorough evaluation of your property that takes into account property location, land value, construction, environmental issues, renovations, market segment conditions and market volatility in order to arrive at a figure. Unlike an appraisal, a valuation is a legal document required to give a lender confidence that they would be able to recoup their money should they have to foreclose and sell in the event of a homeowner defaulting on their mortgage. This means a valuation is a detailed, realistic assessment of what your property is worth. And while it may cost a few hundred dollars, a valuation completed by a fully qualified, independent valuer is the best option if you require something solid to rely on.
How Sellable can help you get a guaranteed valuation and sale price for your home
Sellable is the new way to sell your home based on a realistic and reliable home valuation. We work with professional, independent valuers to offer you a Guaranteed Price. This means that at a minimum, you can be confident that you’re getting a fair price for your home. After you accept our offer, we’ll then work to make improvements to your property to optimise the final sale price. We’re incentivised to help you get a better price because if we do, you keep 75 percent and we keep 25 percent of any upside from your house sale. That’s a win-win result for both of us.