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The Most Accurate Way to Calculate the Value of your Home

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The Most Accurate Way to Calculate the Value of your Home

Whether you’re looking to sell, re-mortgage or make home improvements, you are probably wondering “How much is your house worth?”. Knowing what your home is worth allows you to make better financial decisions. Below are a couple of ways to get the most accurate valuation to help you calculate the value of your home.

Online valuation tools

There are many online home valuation calculators available at your fingertips that can provide you a basic and convenient way to get a ballpark idea of how much your home is worth.

Pros of online valuation tools:

  1. Most are easy and free to use
  2. They are convenient and can give you a basic estimate of your home value quickly

Cons of online valuation tools:

  • Valuation tools don’t take into consideration other assumptions such as housing demand, current economic trends, etc.
  • Each site that provides online valuation tools may take different factors into consideration so results may vary.
  • These tools also do not consider any potential repairs or renovations that may need to be done to your home which can significantly increase your home’s value.

Check similar property sold prices in the area

Looking at recently sold similar properties in the same area within the last 6 months or so will give you an indication of how much your property is worth. This is because part of the buying factor that people take into consideration when buying a property is location and access to facilities. This could be done by looking at the sold listings on real estate sites such as Domain and Realestate.com.au.

Consider getting a professional market appraisal

Many real estate agents provide a professional appraisal service free of charge or for a small fee. This includes them visiting your property and providing a detailed report after. The agents will assess the land and property, the condition of the building including fittings, age, design and layout as well as vehicle access (availability of off-street parking, garages, carports etc).

Pros of getting a professional market appraisal:

  1. A proper professional appraisal will give you more confidence of pricing compared to the more basic online valuation tools.
  2. Your appraisal can be used to counter low appraisals from buyers
  3. There could also be opportunities for repairs/improvements that may result from the report.

Cons of getting a professional market appraisal:

  1. It costs money
  2. If the report provides a much lower valuation that was expected, it could make determining a sale price more difficult.
  3. Appraisals are not

Other Things to Consider

Housing Demand

Another indication would be to see how the demand has been in your area. If there is a shortage of housing in your area, then there will be a higher demand for your home. This could also be seasonal, ie, is your home located near a university? If so, then student intake months would increase demand for your area compared to other months.

Condition of your home (Step by Step guide to preparing home for sale)

When selling your home, you want to make sure the condition of your home is the best that it can be. This includes how your home is presented, not only internally, but also externally such as the front garden and outdoor space. In addition to making sure your home is presented well, you also want to make sure the building is structurally sound. This includes fixing any cracks, making sure there are no issues with flooring and the roof is secure and checked by a professional.

Consider any potential rental income

If your home has a high likelihood of being rented out at a good rate, this should be taken into consideration as an added value to potential buyers. This could be a location where there is a growing population, access to parks and facilities, limited new housing development, and where vacancy rates are low. This research can also be done through real estate sites mentioned above.