Work out how much your property is worth using these different ways.
This is the million dollar question that many property owners want to know: how much is my property worth? Well technically the only way you will be able to answer this is by selling it and seeing how much someone will pay for it. Then you will know exactly how much it is worth. But if you aren’t looking to sell then what other methods can you use to calculate its value?
1. Seek the opinion of an industry expert.
The knowledge of a good real estate agent is invaluable. They should know exactly what is going on in the market, what prices are being achieved and whether people are negotiating as part of their offers. Call on their expertise in order to give you a market appraisal of your property. It is recommend to get at least three valuations in order to help work out what your property is worth. Work out the average if there is a discrepancy between them. Remember that some agents may overvalue your property in order to win your business. It is easy to be lured by the highest figure but essentially a property is worth what someone will pay for it. Therefore if one agent is widely higher than the other agents, then ask them how they have reached this figure. This is also your opportunity to ask the agents whether people are offering at asking price or if not, what percentage lower.
2. Base it on per square metre.
Do you know the exact size of your property? If so then you could work out how much your property is worth on a per square metre basis. You can check to see what similar properties are achieving then work out what yours should be. Most agents will know what this figure is and you can quickly work out for your property by multiplying it with the floor area.
3. Collect comparables.
There is no better way to see what is going in the market than looking at actual transactions. Have a browse through Dot Property to gauge the marketing price of other similar properties. Remember to compare like for like. If prices vary in the same building, take time to see why this is. Is it because it has a better view? Higher ceilings? A better layout? Or an extra bathroom? Take into account that some properties will be marketed at higher value as the owner may not be in a hurry to sell and likewise a cheaper property maybe because the owner need to offload their stock immediately. Chat with your management team or your neighbours to get an idea as to what is going on.
4. Use all three methods.
If you really want to be certain of how much your property is worth then carry out all three methods and then average them out. Remember that values can change in both directions so it is advised to carry out each method at the same time to be as accurate as possible.
