If you owned property, it might prompt the question in your head what the value of my property in today's market is? This question becomes a crucial one if you are thinking of selling your home. To most people, it is still a complete mystery how real estate agents determine prices. This article should provide you with the necessary information to independently price your property to be as close as possible to its fair market price.
How to start your property value research.
The most popular technique of determining a property's value is to compare the property to recently sold properties that are similar in the local area. So in order to get the likely selling price of your property, you will need to do online research to get the data on the recently sold price of any properties similar to yours that are located close by.
Step 1: Look for comparable local sales data.
Steps on getting sold data for free using the property portal website
Go to any Australian property portal website that listed properties for sale and sold. The most popular is: realestate⭷ and domain⭷).
Look for your suburb of interest (note: some websites by default has the "surrounding suburbs" option is on, so deselect that.
Go to their "sold" section, not "for sale" section.
Filter the options by choosing a similar attribute to your property (property type, number of bedrooms, land size, etc).
Sort the property list based on the newest sold date to the oldest (note: some websites by default sort the list based on most relevant).
Now you have comparable data of recently sold property in your suburb based on sales date.
When you do your research try to look for these characteristics:
The property sold within the last three to six months, the more recent the better.
Within 500m up to 1km of your property, the closer the better.
Similar style and condition to the property you’re trying to value.
For paying option: Subscribe to CoreLogic: RP Data Professional, to get a list of sales for any suburb or postcode.
Because we subscribe to CoreLogic: RP Data Professional, we can provide you with a list of sales for properties in most states for free, just contact us.
Step 2: Get a list of sold properties that are comparable with yours.
You need to make a list of recently sold properties that are closely similar to yours. Consider the following characteristics in particular:
Location: Compare the distance from local amenities and public transport? Are the property has the same school catchment?
Size: Does the land size comparable? Are the building size or living area comparable?
Features: Is the number of bedrooms, bathrooms and parking spaces the same? How about the pool?
Presentation: Are the properties have the same presentation or style?
Age: Is the age of the building comparable?
Step 3: Compare the sold prices of comparable properties to get your property value price.
To get an accurate figure, you must compare properties that are as closely similar to yours as possible.
Let's start with something relatively simple. Imagine you want to sell a unit in a large, high-rise apartment complex. Chances are some of the units have recently sold, and a few of the sold might have a similar floorplan to the floorplan of your unit. Together with other factors discussed above, this sold unit will be the based for your comparable properties. The more comparable sales you find, the greater your confidence level that you are close to market price.
Physically inspecting open homes of another unit for sale allows a better comparison because you can see for yourself any differences. When you have done your research and inspected enough property over some time, you will be able to assess the market condition and use this knowledge to determine the price of your property.
The same principle applies to the house, but you have to do more thorough research. You need to look at all houses similar to yours that come on the market in the same neighbourhood as yours and record the prices they are sold for. After a long period of research and exposure to the market, you would become an expert in pricing by seeing what other people were prepared to pay for each house. The longer you did this, the better you would become. This is the best knowledge you can obtain because it is unbiased and unfiltered by any third party.
Conclusion.
In summary, to get the likely selling price of your property, you can do online research of the recently sold price properties similar to yours. The steps are:
Step 1: Look for comparable local sales data.
Step 2: Get a list of sold properties that are comparable with yours.
Step 3: Compare the sold prices of comparable properties to get your property value price.
You can skip the hassle of doing your own research and get an honest opinion of the value of your property in this current market by getting your free property appraisal or contact:
Irving Gunawan | RayWhite Kellyville Licensed Real Estate Agent