Real estate comparables act as a guide for investors, buyers, and sellers. They are the properties that are most like your own and have just been recently sold. This gives you an idea of how much someone is willing to pay for your property. When you use comparable properties for calculating market value, it is called using the comparison approach.
The comparison approach is a very commonly used and accepted method of property valuation in Sydney. It is used by professional valuers of all kinds including residential and commercial property valuers. The importance of comparables in real estate is great as it is one of the most accurate ways of finding out your market value, but you will need to have the right properties to compare to.
Here are three smart ways to find the right comparable for your property –
Market analysis – Finding the right real estate comparable for a valuation is crucial. First, analyse your house or property. Make a list of the features it possesses. Then you have to find a comparable that possesses all those same features and would have been recently in the same area.
Make sure the comparable property is as similar as possible, ideally, they would be identical. A comparable should be the same property type and have the same local amenities, number of rooms, land size, bathrooms, and other qualities. The more in common a comparable has with your property, the more accurate your total market value will be.
As market trends and property values are different in every suburb, city, and state it is best to find your comparables that are no more than 5 kilometres away from your property. The same can be said about timing. The market is constantly changing, so not only does a comparable need to be close by but its sale needs to be as recent as possible. Sales that are older than 6 months are not recommended, so it is best to use comparable sales within a shorter timeframe.
Real Estate Websites –If you were wondering how to get real estate comps without a realtor, this is it. There are many real estate websites, that can help you find properties in your area that are for sale or have recently sold. The properties that have been sold are what you want to use, and you must remember that you are looking for properties that are like the subject property, have been recently sold and are in the same area. You need to find at least 3-6 comparable properties. Using their average, you’ll have an idea of how much your property is worth.
Some of these websites offer a tool that will automatically generate an approximation of a property’s value. All you need to do is enter the address. This is a great way of getting a quick market value estimate. While this value may not be appropriate for such things as Court use or taxes, it can be a good starting point for planning the sale or purchase of a house.
Hiring the professionals – To save you time and effort, you should hire a real estate property valuer. It is the easiest and quickest way to receive an in-depth report of everything there is to know about a property. As these are professionals with an extensive amount of education, training, and experience, they have the skills and expertise to calculate your property value correctly and accurately.
Only with a property valuer, can you be sure that all crucial factors have been considered when finding out your property’s market value. For example, is there a unique feature or benefit that only your property in the area possesses? With their knowledge, a valuer can adjust their calculations and their comparables analysis for a true value report.
To hire a property valuer and to take advantage of their house valuation services, feel free to contact us. We’d be happy to help you find real estate comparables and the market value of your property.