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Property valuation: the expert formula for calculating the value of your home

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Property valuation: the expert formula for calculating the value of your home

It’s the big question in any seller or potential buyer’ mind: what exactly is this house worth? When it comes down to it, the answer is both simple and complex: a house is worth whatever someone will pay for it. Many, many variables come into play, however. ‘The market’ is a blanket term that encompasses the environment in which you’re selling your house, and the factors that affect how much you can ask for versus how much you’ll likely receive. You can get your home valued by professionals: but why stop there? Knowledge is power - and knowing your own home’s value will empower you in the process of selling. Here’s how to calculate the value of your own home.

Use the tools that are readily at your disposal. Sites such as domain.com.au and realestateview.com.au offer free, highly accessible programs which allow you to not only ascertain the perceived worth of your property, but to also track said value over time. It’s an invaluable tool to any person looking to sell their home, without much professional experience. Of course, the figures provided only pertain to a ballpark amount, and the values tend to be on the more conservative side, but for an initial idea this is perfect.

Compare your own home to recent sales in your area. Three broad, simple criteria should be kept in mind when doing so: “is this house as nice as mine?”, “is this house as big as mine?”, and “does this house have more potential than mine?”. By answering yes or no to these questions, you’ll begin to develop a clearer idea of what you can expect from your house. Information like sale prices are available at the click of a button, and often you can track the trajectory of a house’s worth over time. By gauging the value of similar houses in your area, you’ll be able to gain a much more specific and refined parameter around the worth of your house.

Of course, with Homesta, you can entirely forgo contacting a local real estate agent for their own appraisal. The thing is, agents may have a (justified, it’s their job) ulterior notice of becoming hired as your selling agent. Due to this, it’s important you take their appraisals with a grain of salt. The amount they provide you with may be more in line with what you want to hear, rather than what the reality is. Naturally, we’ll choose the agent who promises us the biggest sale. It’s with this in mind that you should do your own research, prior to or after the matter, and trust your own judgement in the end.

If you, like a lot of us, tend to second guess your judgement - especially when it revolves around such a large amount of money - then it may be worth shelling out for an expert appraisal. The majority of expert appraisals tend to cost between $300 - $600, but can fluctuate greatly. Look at this as an investment into a successful sale. Good luck!