27 Apr 2011
You probably think you have a pretty good idea of what your property is worth, but if you’re not a real estate agent or property valuer yourself, you might be missing the mark quite substantially.
Many sellers think their property is worth more than it actually is, it’s only natural to value your own possession higher. How do you overcome this? Or alternatively, how do you bring your property up to the standard of the value that you’ve given it.
4 key points to consider –
1. Just because you’ve put money into the house for renovations, doesn’t mean you’ve increased the value of the property by the amount that you’ve spent. You may have overcapitalised, meaning you’ve spent more on the renovations, than what you’ve added in value to the property.
2. If you have a house that’s comparative to a newer house down the road in terms of land size, bedrooms etc, it doesn’t mean that your properties are worth the same amount. You have to consider the age of the house, the structural and building materials, possible variations in the land value (determined by Council Rates), functionality of the property and proximity to external factors such as public transport, main roads and schools.
3. Small things add up, particularly if your home doesn’t present as nicely as it could. Things you take for granted can mean a lot to potential buyers. Chipped paint, stained carpet, loose brickwork, ugly door knobs all add up and when buyers are evaluating what they might have to spend on the property to bring it up to scratch, it can mean they won’t offer you your asking price. Spend a little time fixing the little things, because they can make a huge difference to your property’s value.
4. Yards, gardens and outdoor entertaining areas usually add value to a property, however if you haven’t looked after yours, even though it is a feature, it could pose more work for a buyer and potentially turn them off your property. A well presented and functional outdoor area is far more valuable than an unused patch of land.
To give your property the best chance of being valued correctly, you should talk to a few real estate agents who live and work in the area you’re selling in. Like our team here at Professionals Casula
, they should have a very good understanding of the current real estate market and be able to piece everything together for you to come up with the right value for your property.