How to know how much your house is worth
Correctly determining how much your house is worth can put you at a huge advantage when selling your house, ensuring you minimise your time on the market and maximise your profits. Conversely, if you misfire and incorrectly estimate how much your house is worth, it can put you at a great disadvantage. Sellers and buyers don’t always agree on a home’s value. At RE/MAX, we believe it is our role as agents to help the market see the optimal level of value in every property, to help get the best possible result for your sale by setting the right sale price.
How to determine the value of your house
There is an undeniable art and science to pricing a house. Price can either be a big drawcard or a big deterrent when it comes to selling your home. This isn’t necessarily a linear progression either: a cheaper house might be on the market for years or a multi-million-dollar property snapped up within a week of going to market. What buyers are looking for is value.
How to check your market value
The key things to consider when determining the market value of your property are:
- Market value in comparison to property prices
Supply and demand play a major role in determining market value, as does the actions of the other sellers around you. Are there lots of properties on the market just like yours at the moment? Is there a new development that’s just been released? Are there only few comparable options in the area? Understanding the market is key to knowing what price to set for your property.
- Buyer demographic
Is your property attracting owner-occupiers or investors? Investors tend to be more ‘transactional’ and consider the rental yield and potential capital gains. Owner-occupiers are more ‘emotive’ with their property search as they want to be able to envision their life in your home.
- Additional value offers and opportunities
It’s important to identify which features of your house that the wider market will perceive as valuable and compelling. Some buyers might be willing to pay a higher price to get the specific features they want in a home. Common value-adding features include a pool, proximity to a school, or a private, greenery-dense outlook.
How can I sell my house quickly?
To ensure your home sells quickly, there’s a myriad of factors you should aim to optimise. It’s imperative to make sure the price of your house is aligned with current market factors. Looking at the recent sales of comparable houses in your suburb and analysing average price trends is a great place to start with this. Try to wrap your head around supply and demand fluctuations within the market. This changes all the time and depends on the area. By doing your research before heading to market, you will have a better understanding of how much your house is worth and what sales price to set, resulting in a quicker sale.
Why is my house not selling?
You may be in a position where your house has been on the market for a while and you’re not seeing the level of high-quality offers you were anticipating. There are several factors that can contribute to this: perhaps the timing isn’t right and the right buyers aren’t in the market just yet, or perhaps your street appeal is letting you down. While many external factors can slow down the sale of your home, the primary reason your house is not selling is that buyers aren’t considering its purchase as good value for money.
How to increase the value of your home
Rely on your qualified agent to help you price your home right and support you through every stage of your home selling journey. When you list with RE/MAX you have more eyes on your property and more opportunities to get the best result for your property.
RE/MAX has the strength and tools to connect your home with a global marketplace, providing access to millions of buyers around the world, giving your property the best chance for a great result.
With the advantage of global reach and local expertise, our experienced agents combine local know-how and market data to determine property value and drive the right price for your home.
Contact your local RE/MAX agent for a free property estimate today!
SOURCE: RE/MAX Australia
