Are you planning to sell your property? Do you need your market value for tax reasons or even for Court? Or perhaps you’re just curious? Whatever the reason may be, there are quite a few different ways you can get an estimate of how much your Sydney property is worth in today’s market.
A property’s market value is what a sensible and informed buyer would pay a calm and well-advised seller for a property in a fair transaction. This hypothetical buyer and seller would not know each other and wouldn’t have any biases or outside influences impacting their decisions.
If this is the value you’re looking for, there are many avenues you can take. The best way to go about getting an estimate of your property value will depend on the resources you have available and why you want or need this information.
Here are 5 ways you can get a market value estimate of your property:
1. Market Appraisals
No doubt you have seen a business card or flyer offering a free market appraisal from the local real estate agent. This is one of the most common ways to get a good idea of how much your property might be sold for. An agent uses their experience and best judgement to present the price your house is likely to be sold for. This is heavily based on personal observation and perhaps self-motivation.
Because of the personal element, it is best to get at least 3 appraisals from 3 agencies and then calculate the average for a slightly more accurate estimation. This is a good option if you are thinking about selling sometime soon so that you have a rough idea of how much your property might sell for. It also gives you an opportunity to meet the agents and see which one you prefer to handle your sale. Market appraisals from real estate agents are not recommended for much else.
2. Sales Comparison
For those that like doing a bit of research or perhaps fancy a little D.I.Y. or math, this might be for you. A method a lot of professionals use to calculate market value is called the comparison approach. It uses the sales prices of properties that are very much like your own and their size to get an estimate of your property value.
First, these properties need to be roughly in the same area as your house, ideally in the same suburb. They’d have the same number of rooms, bathrooms, floors as well as other features. These are called comparable properties and you will need at least 3. Once you have sufficient properties to compare to, you must calculate the average price per square metre. From there multiply it by the size of your property and you have its property value.
There are situations where this is a suggested method, and it can be fairly accurate when properly done. Do your research, confirm if this is an appropriate option for you and make sure you use the right comparables.
3. Online Valuations
There are plenty of sites out there promising free online valuations and they can be a great way to get a fast and quick estimate of your property value without calling anyone or even leaving your bed. They use an algorithm and available data of your home to quickly calculate an estimate. These sites will often provide a range of what your house may be worth. Results may vary from site to site so it may be best to visit multiple sites and calculate the average for a better approximation.
As with most of our online activity, be careful about privacy. Try to use sites that are reputable and familiar, such as Domain, Realestate or official bank/lender websites.
4. Property Valuation
This is a very formal option, and, in some circumstances, it could be your only option. This is by no means the cheapest way to find out how much your property is worth, but it is the most accurate. A property valuation would be conducted by a highly educated and trained professional and it will provide more than just an estimate.
A professional valuation provides a comprehensive report, specifying every important detail of the property. All information that has been used by the residential property valuer to determine the property value is included in the report for transparency. This may be required for official uses of market value such as handling a deceased estate, doing your taxes, or settling property.
While it can be pricey, it could be worth having a valuation before buying or selling a property so that you are well informed before making any commitments. This could end up saving you a small fortune in the long run.
5. Seek Advice
Perhaps the best thing you can do is to seek advice from a relevant professional about which of these options is best for your situation. This could be a lawyer, an accountant, a financial advisor or even a lender. For things like taxation, litigation or compensation, a valuation could be the best and/or only acceptable choice.
For those that are simply curious or are in the very early planning stages of selling or investing in property, the first 3 options could be a sound choice. Why not call an expert today to find out more about getting a property valuation in Sydney or using one of the other 5 ways of estimating your market value.