Property Valuation news
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Property Valuation news, tips and advice for Australian Property Owners
The Australian housing market has seen significant changes in recent years. With rising interest rates, tightening credit conditions, and slowing price growth, many homeowners are wondering how to maximize their sale price in this shifting landscape. While the market poses some challenges, seller still have options to get top dollar for their property. This article explores strategies to optimize your Melbourne property valuation in today’s market.
Evaluating Your Local Market Conditions
The first step is understanding how your local market has been impacted. Sydney and Melbourne saw rapid price escalations from 2015-2017, while Perth and Darwin declined due to the mining downturn. The past year has seen a nationwide slowdown, but conditions still vary greatly by location. Reviewing the latest data on prices, stock levels, and demand in your suburb and city provides insight on competitiveness and leverage for negotiating. Track quarterly and monthly changes as well to spot emerging trends.
Pricing Your Property Accurately
This information will enable you to price your property appropriately. Overpricing leads to extensive time on market and “sticky” listings that deter buyers. Research sold prices for comparable homes in your area over the past 6 months. Consider size, condition, renovations, and other features that impact value. Aim for the lower end of the range; you can always negotiate up, but overpriced properties linger.
Preparing Your Property for Sale
A few key upgrades can maximize your home’s appeal and sale price. Tackle any deferred maintenance like leaky roofs or old wiring. Declutter and clean to showcase the space. Style the home neutrally so buyers can envision their furnishings. Minor kitchen and bathroom updates offer big returns if dated. Curb appeal matters, so focus on landscaping and exterior maintenance.
Marketing Your Listing Extensively
Your marketing strategy is vital for generating interest. Professional photography, 3D tours, and floorplans essentially sell the home online before anyone visits. Write a compelling listing description highlighting features, lifestyle, and location. Syndicate to real estate portals for maximum exposure. Leverage your agent’s social media and email campaigns. Install a for sale sign with agent contact details. Marketing gets buyers in the door so your home can sell itself.
The value of a house is determined by many different factors. While no two properties are alike, there are some common elements that tend to drive prices up or down. Understanding these key factors can help sellers price their homes competitively and buyers determine if a property is worth its list price.
One of the most important factors affecting a home’s value is its location. Houses located in desirable areas near amenities like good schools, parks, and shopping tend to command higher prices. Properties in neighbourhoods with higher crime rates or far from job centres typically sell for less.
The size of the land that comes with the house also impacts price. Larger lots allow for more privacy and expansion, which buyers find attractive. Smaller lots tend to lower prices, while overly large rural properties can also decrease value if there is unused land.
Larger homes with more bedrooms and bathrooms typically sell for more. Square footage and layout play a role, with open floor plans and ample storage space being preferable. However, homes that are significantly larger than others in the area may be harder to sell.
House condition and upkeep are important factors. Well-maintained homes in turnkey condition often appraise higher. Homes needing major repairs or updates due to damage, deferred maintenance or outdated materials may negatively impact valuations.
Age & Architecture
A home’s age can influence price. Older homes with dated layouts or features may sell for less, while newer construction usually fetches higher prices. Architectural style also matters, with unique homes selling for more in some markets.
Your home’s value can fluctuate frequently depending on market conditions. Knowing your home’s current fair market value is crucial for making well-informed decisions about selling or leveraging your equity. While you don’t necessarily need to get a formal appraisal done every single year, there are certain times when proactively updating your home valuation should take priority.
At Minimum Every 2-3 Years
A good general rule of thumb is to update your home’s valuation at minimum every 2-3 years. Real estate markets often move quite fast, and an outdated or stale appraisal could leave you with an inaccurate or skewed picture of where your true equity position stands today. Getting a new appraisal performed every few years ensures you have a relatively current snapshot of what your house would likely sell for in the present market.
With a fresh appraisal report in hand from a licensed professional, you can then revalue and adjust your overall net worth and financial position accordingly. This provides you with better visibility for near-term financial planning needs. You’ll also feel fully prepared to act should specific life circumstances arise that necessitate selling your home or cashing out equity in the near future.
Before Officially Listing for Sale
When you are clearly preparing to put your house on the active real estate market for sale, obtaining a new appraisal is generally essential. The up-to-date appraisal provides your real estate agent with a credible and impartial price opinion to lean on heavily when recommending and setting the final listing price. It also gives them recent comps to cite when marketing the home’s value and justification for the asking price to prospective buyers.
In particular, an appraisal completed within the past 6 months holds significantly more weight and relevancy versus appraisals that are several years old or outdated.
The new appraisal also supplies a detached estimate directly from a licensed professional appraiser versus having to rely solely on your own analysis of market comps or just taking your real estate agent’s word for it. This evidence-based valuation approach tends to generate increased confidence, trust, and perceived fairness from potential home buyers regarding the listing price and underlying basis.