With prices continuing to rise for houses and apartments, there’s never been a better time to learn the basics of assessing a property’s value before meeting with your agent.
Valuation is not a perfect science. You can never predict the behaviour of other buyers in a booming market. However, understanding the key elements that make up the price of a property will help focus the search for your dream home.
As an experienced local agent, I’ve listed a few of the primary ways to assess the likely price of a house or apartment.
Market mood
There’s no greater influence on the property sector than market mood and you can tell what the mood is like from understanding key datasets like time on market. Seek information online to find out the average time it takes to sell a property in your target neighborhoods. Short periods of time indicate the market is hot. Longer time on market means you may be able to negotiate a better price.
Recent sales
Discover this information on real estate websites. Make sure you’re comparing properties that are similar in style, size and location and which have sold recently to see the spread of prices being achieved, and the features that are supporting strong value. .
Hot buttons
Don’t discount the additional value of features which buyers are prepared to pay a premium for. These might include a home office, new kitchen, swimming pool, or garage spaces. They can add a lot of value if the basics of the property are well maintained and presented but may not be so important if the property overall is not in great condition.
Owner discounting
Talk to local agents (I’d be happy to help!) about the number of properties that have needed their owner to drop the price. Discounting can even happen in a strong market simply because the owner asked a little too much, couldn’t get the desired price but was still keen to make a deal quickly. You want to understand if it’s happening a lot or just occasionally.
If I can help you purchase your next property or sell your current home, please do not hesitate to contact me. We can discuss price trends, buyer hot buttons and the best strategies to maximize the value of your home or negotiate for your dream home.