Anyone who is an expert on property will tell you that your house is really only worth what someone is willing to pay for it. But if you’re working out insurance or planning to sell your home, you might be looking for a more solid answer.
If you want a heads up on what your property is worth, here are five key factors that might influence the value of your home.
Council valuations can be found on your local council’s website. These valuations are primarily designed to identify what level of rates you should pay and are not usually accurate to your current property value. Because they are only renewed every three years, be prepared to be advised that the market is operating above or below the current RV.
The condition of your property
Registered valuations rarely take into consideration any remedial work that might be needed on your home – but prospective buyers certainly will. Getting a builder’s report is an accurate way of understanding the cost of bringing your home up to standard. Then you can either do the work, or just be aware that any valuation will need to take this cost into account to be accurate.
What’s going on in the neighbourhood?
The area you live in can influence the perceived value of your home. Local schools, (lack of) crime, and local amenities all add to the appeal. In addition, most valuations should take into consideration house sales in your area. Especially whether they are selling above or below current registered valuations.
Is your home in demand?
The true measure of your home’s value is how many people want to live there. A real estate agent may be able to tell you what the most desirable type of property is on the market at present and the kind of premium you can charge for it.
How’s the market performing?
At any given point in time, the value of your home will be strongly impacted by the real estate market you’re selling in. If there are very few properties on the market, the demand may push your property value up. Vice versa, if there are lots of properties available, your property value may fall.
All of these factors might impact your property value, but for the most accurate appraisal of what your home is worth, you may want to consider calling a registered valuer, as working out the value of your home is their area of expertise. Bear in mind that a proper appraisal can give you confidence in your valuation, as well as a good understanding of how to increase value or maintain the current appeal.
An Adviser Disclosure Statement is available free and upon request.