As real estate agents, we understand that valuing your property can be a daunting task. However, it’s crucial to have an accurate understanding of your property’s worth to make informed decisions about selling or refinancing your home. Let’s explore how a residential property is valued and the factors that can affect its valuation price.
First and foremost, location plays a critical role in determining a property’s value. Homes in highly sought-after areas with access to transportation, schools, and shopping centres typically have higher values than those in less desirable neighbourhoods.
The size of your property and land is another significant factor. Larger properties generally have higher values than smaller ones. The condition of your property is also essential, as well-maintained homes are more valuable than those that require repairs or upgrades.
Additionally, amenities like a pool, garden, or garage can significantly impact your home’s value. And finally, market conditions must be considered. During a seller’s market, when demand outstrips supply, property values typically rise. Conversely, during a buyer’s market, when there are more homes for sale than buyers, property values may fall.
As a homeowner, there are steps you can take to maximise your property’s value. Maintaining your property is key, and regular upkeep such as fixing leaks, repainting, and replacing outdated appliances can maintain or increase its value. Making upgrades and improvements like adding solar panels, installing air conditioning, or adding a new bathroom, can also help boost your property’s value. Finally, enhancing your home’s curb appeal, by improving landscaping, painting the exterior, or upgrading the front door, can also add significant value.
It’s also important to understand the difference between a real estate valuation and a bank evaluation. A real estate valuation (often called an appraisal) is typically conducted by a certified valuer to determine the market value of your property. This type of valuation is often requested by property owners who are considering selling their homes or by buyers who want to ensure they’re paying a fair price.
A bank evaluation, on the other hand, is conducted by the bank to determine the market value of the property for loan purposes. Banks need to evaluate the risks involved in lending money, so their evaluation may be lower than the actual market value.
Understanding the factors that influence your property’s valuation, maintaining and improving your home, and being aware of the differences between real estate and bank evaluations can help you make informed decisions when it comes to selling, refinancing, or applying for a loan.
Our team are experts in properties and valuations in your area and can offer you a no obligation-free valuation on your home. We can also help you with suggestions that will increase the value of your property if you are thinking about selling. Call us to organise your free home appraisal.