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Why use comparables when valuing your home?
October 2, 2017
When was the last time you walked into a store (wearing specially designed human blinkers), ignored the worried looks from the staff and made a beeline towards the first (and probably the most expensive) television you saw? It is completely natural and wise to spend time researching products and costs for some of the smallest purchases we make. We even spend time squeezing avocados and smelling rock melons just to make sure we get the piece of fruit that was destined for our own bellies. So, when it comes to one of the largest transactions we can make, if we are fruit experts then why not be property experts?
It has never been easier to use free and accessible tools to research the real estate market, and one of the most effective measurements to make is how your property compares to its neighbours.
Assessing comparable properties
There is no greater litmus test for how your property may do on the market then looking to your neighbours. Using up-to-date comparable property data is the first and fundamental step in the process of valuing your home.
Why not go straight to having your property valued by a professional?
If it is time to sell, then you will definitely want to have your property valued but it is now easier than ever to have a continuous eye on the market and your property’s value without having to spend any money. Having this knowledge throughout the time you own your property will help you identify trends in the market and in turn help you choose the right time and right way to sell.
For instance, looking at comparable property data may reveal that two houses within your neighbourhood, which share the same attributes as yours (i.e. 3 bedrooms, 2 bathrooms, 2 car spaces), sold at different price points. If they sold within a similar time period, you can then focus your analysis of these sales to identify what property seekers are looking for in your neighbourhood. Location, the layout of a home or how recently it was renovated may be the discerning factor separating those two properties, and identifying what worked for one property will help you realise what will work for the sale of your property.
With this information and knowledge, you can approach your real estate agent entirely informed and realistic about the sale of your property. This doesn’t mean you shouldn’t listen to your agent, as they have years of daily experience within the market and should be the most informed source of information and leadership for you during the selling period. But ask yourself: does your real estate agent live in your street? Just as they have expert knowledge on the market and sales techniques, you know the product you are selling better than anyone else and being informed means you won’t go into the process blind.
Using view.com.au’s Property 360 Price Estimates tool, you have the freedom to see key sales data for every address in Australia, view neighbourhood demographics, adjust the attributes of your home (for instance, if you have added a second bathroom) and then choose your own comparable properties to find a price estimate for your own property.