The property market can be tricky to navigate. And, it changes over time, which can make it tough to understand the value of your current home, or a property you’re interested in buying.
While the true value of a property is decided on the day of the sale, there are some things you can look at to help figure out if that dream home fits in your budget.
It’s all in the detail
Valuing your home based on tangible features is a great place to start. Think about things like:
- Land size and type of block – is it a corner? Does it have duel access? It is on a busy intersection or quiet cul-de-sac?
- Number of rooms, bathrooms and car spaces
- Building condition and whether it’s been renovated or in original condition
- Location including convenience to schools, public transport and shops.
Usually, the more space, better condition and location, the higher the value of the property.
Going once, going twice…
Look at similar properties in the local area to get an idea as to how yours compares. Some things to consider;
- Compare apples to apples. Try and find homes that have a similar location, presentation and condition.
- Remember to look at properties sold in the last 3 months, not what’s currently up for sale or what the real estate agent thinks it’ll sell for.
Try and take all emotion out of the equation. You might even like to ask a friend who can be a more neutral sounding board to bounce your thoughts against.
Immerse yourself in the market
Things like interest rates, supply and demand in the area and overall buyer confidence are just as important to the final property price, but can take a little more time to figure out.
Measures like days on market and auction clearance rates can also help with understanding demand.
But a big investment deserves the effort. What are you doing this Saturday? Clear your schedule, because the best way of getting a feel for the market is to hit the open homes and auctions and see for yourself. Speak to agents and other buyers and remember to check what you learn against those Residex reports to get the full picture.
There’s definitely an art to valuing property. With a number of things to consider, it’s easy to feel overwhelmed or out of your depth. Our guide can help take the guesswork out, so you’ll be ready to fill in your home loan application in no time!