Do you know the value of your house? Whether you are a property investor who is looking to sell your apartments, an individual/landlord who wants to sell your home or simply looking for a home loan you will need a property valuation. This determines the value of your house based on many things such as; the size of your property, the size of the land it’s on, how many rooms it has, physical details on the construction and conditions of the dwelling, and immediate issues that need to be addressed to increase its value.
A report release by CoreLogic in the past year estimated that there are 2.6 million investor owned dwellings across Australia worth approximately $1.37 trillion. What is the price tag would you put on your own home in an investor owned dwelling market that is valued at $300,00 and $500,00? This will change from state to state. Here is how to know whether you are sitting in a goldmine or a ticking time bomb that will swallow up your finances with these five tips.
You will have to sober up
Before we proceed with how to go about evaluating your house the way a property valuer does you will have to be realistic and objective. You will have to treat your house as an object. Look at it for all its goods and imperfections. At the end of the day you want to make a deal that will benefit you.
Prod and poke your property to see if it will fly
To follow in the footsteps of a property valuer you need to know every nook, and cranny of your house like the back of your hand. Look at the building structure and its condition. Look for any faults that need to be taken care of immediately through home improvements. List the number of bedrooms and bathrooms detailing the layout. See if there is easy access for a vehicle, carports and garages you have. If you have an out building include that too.
Your location is a determining factor
The first thing is to jump on the net and see how other regions compare, but start off small. Prices differ from region to region. It’s best to compare your property attributes to similar properties that have been sold in your local market, and surrounding areas.
Keep up to date with the property market
The markets change all the time and this makes the property market no different with changes happening every 3 to 6 months. This means you will have to stay atop of these changes to make a realistic demand.
Technology has allowed for information to be available at your fingertips. Surf the net to find out the latest statistics and data to number of sales being made in your area, sale history of the subject, copies of the title and registered plans. Speaking to a local agent could also give you a more solid view when compared to online data and statistic. Know what people are looking for in your area when it comes to a house. There are plenty of articles and the latest research on housing trends that make a house sell. This could range from; energy saving technology in the house, a chic kitchen or bathroom, right up to a lock up car accommodation.
Compare your house on an apple to apple basis
Look at your comparables, which are things that have made other properties sell in your area. This will indicate what are buyers willing to pay in an area for property. Find a house that has been sold that matches or is like your own, and use that as a measuring stick. Stick to houses that have been sold in the past 3 to 6 months to get a more realistic picture.
Your researching could end up in copious amounts of paper work. Keep it in order with an excel spread sheet to make your information accessible at a glance. You will eventual come up with an estimate that will show you the value of your property. It is always advisable to seek the help of a professional to make things a bit smoother for you. If you need a property evaluation for a home loan from a financial institution, its best not to overwork yourself as they already have a selected board of property valuers.