Many homeowners will now be debating whether it’s time to capitalise on lower interest rates and a growing exuberance in the property market by putting their home on the market.
There’s a lot to think about before taking that step, of course.
A strong sense of purpose and vision for the next chapter in your life is fundamental to having a successful transaction and enjoyable experience.
You also need to know the likely market value of your home and how it might match the price expectations for your next purchase.
Your borrowing capacity is another critical question.
While getting your financial house in order is important, the first question everyone wants answered relates to the value of their property.
Influencing factors include the economic and market conditions, which are quickly improving, plus your location, land size, style of property, and its age and condition.
It’s a good idea to undertake research to establish your own estimate of value. However, the assessments that hold the greatest authority should come from real estate agents or even a valuer.
One of our agents would be delighted to conduct an appraisal for you.
Here are some tips for how to proceed:
Agent appraisal – Agents will make their assessment based on recent sales, local market dynamics and their knowledge of buyers seeking homes in your style and price bracket.
Comparative Market Analysis – A CMA is a detailed report that an agent will provide to show you homes similar in style and size to your own that have sold in the past three to six months. This document provides evidence of actual deals done, rather than what you might hope to achieve.
Consistent view – Every agent will have their own view of a property’s value. Seeking the guidance of three agents is a common approach. Watch out for under- and over-quoting, which can be techniques to win your business.
Valuer’s assessment – Conducted by a certified valuer, this is an objective, detailed report often required by banks, lenders, insurance companies and legal entities for the purposes of refinancing, taxes or divorce settlements. As a rule, a valuer’s assessment is lower than your agent’s view of what they can sell the property for.
Your research – You should watch the market carefully and have your own view. The most valuable application of this knowledge is your judgment of the professional appraisals from agents and a valuer.
Online tools – There is an array of tools to help you assess your property’s value. The major portals – Domain and realestate.com.au – are two of the most popular destinations for this work. The Big Four banks also offer tools as part of their home loan marketing. You can also opt for help from specialist companies, such as CoreLogic, Open Agent and OnTheHouse.