How much is your home really worth in today’s market?

A property appraisal is also your first step if you are thinking of selling. “It really helps clarify your options,” says Jonathan. “You might want to buy somewhere bigger, or relocate for a job, or free up some cash and downsize once the kids have moved out. An appraisal gives you a good idea of how much you’re likely to get for the property, and you can build on that foundation.”

Since market conditions are always changing, property appraisals should be kept up to date. “We look at the comparable data,” explains Jonathan. “Sales from the last 30 days are a much stronger indicator of price than sales from a year ago, so it’s a good idea to refresh your appraisal if you haven’t got one in a while.”

What really determines what a home is worth? 

There are several factors, and it can be hard to know how to balance them.

Location

“Location is a huge one,” Jonathan says. “Inner city and city fringe suburbs are always popular because they’re so convenient for workers. For family homes, school zones are another big drawcard. I’ve seen houses on one street go for as much as $30,000 more than an almost-identical house one block over, just because it falls in a desirable school zone.”

Proximity to public transport, shops and infrastructure are all additional factors that will get the buyer buzzing, and a good agent will highlight those in an appraisal.

Size of your home

The size of your home will also significantly affect its price. That includes the size of the block as well as the overall living space. “A small house on a large block could be attractive to developers as well as people who value a big garden, so it’s worth more than the same house on a smaller block.”

Property layout

Your floor plan and layout definitely influence value. The number of bedrooms, bathrooms, living spaces, ensuites and alfresco areas all make your home more desirable and therefore up the price. An agent will look at all these things when comparing your home to similar properties.

Condition of your home

Another major factor is the condition of the interior. Is your home newly updated and ready to move into? Or will it need some work from the buyer?

“Buyers mentally price in any extra work they’ll need to do,” explains Jonathan. “If the kitchen is looking tired, and they think they’ll need to spend $15,000 on updating it, that $15,000 comes off their spending budget. If your kitchen is brand new, however, buyers will usually be happy to pay more to just move in and enjoy it.”

Market conditions and timing

Economic trends, interest rates, and local housing market dynamics can affect property values. Seasonal variations can also impact prices. You need a real estate agent who knows the local Canberra region well to find the right buyers.

What is the most important factor that determines the value of your home?

There is no one answer to this question. Most buyers start with a location, but quickly get influenced by other special features in your home. 

Balancing these factors is where it gets really tricky. Is a large house in need of some love worth more or less than a smaller one with a brand-new upscale interior? How much is that view really worth?

“Character homes can be tricky to appraise. You really want an agent with experience and skill set in that type of property,” Jonathan says. “It’s not just a matter of looking at similar properties, like you would if you were selling a unit in a large development. You need to really know your market. We conduct buyer research evenings where we can really drill down to what buyers want and what they think a property is worth. Then we can take that knowledge forward to future properties to give sellers as accurate an estimate as possible.”

The bottom line is that how your real estate agent operates matters a lot. An experienced agent will know how to highlight the special features of your home for the specific demographic of buyers you’re targeting. 

How to go about getting an appraisal?

If you want to find out what your home is worth, an appraisal is the best way to go. With Independent Property Group, you can get a free, instant online appraisal and a detailed appraisal by contacting our team.

Our online appraisal gives you a house sale price estimate only and is a great place to start your journey. 

The purpose of a detailed, professional market appraisal is to cover 3 key areas. These include:

• the likely price range your property could achieve based on current marketing conditions and competition
• recommendations to assist you in achieving the best outcome in a sales process
• marketing advice to suit your property and circumstances