Do you know how much your property is worth? Photo: Region Media.
If you’re a home owner, knowing what your property is worth is important on a few levels. It’s useful information to have if you’re considering selling, and it can also be necessary for insurance purposes. It’s recommended you get your house valued every one to two years.
Will Honey from The Property Collective explains how to check the value of your house.
1. Decide if you want a market appraisal or an online estimate.
Depending on your needs, you can either have an agent come out and value your house in person, or you can get an automatic estimate using online calculators or digital apps.
“In general, a market valuation is going to be more accurate and useful than an automatic valuation, because an agent can take into account more market factors than a data-based report,” Will says.
2. What does an agent consider when valuing your house?
A market valuation is based on a number of factors, including the sales record for other houses in your area, your location, block size, house size, any renovations and amenities. Your appraising agent will review sales data for the area and also the general performance of the market when valuing your house. They’ll also conduct an on-site inspection.
“A big factor is the agent’s experience and knowledge from selling properties like yours, and in your area. This can provide more nuanced insight into how your house might be valued in the market,” Will said.
3. Should you get more than one appraisal?
If you ask more than one agent to give you a valuation of your property, it’s very likely you’ll get slightly different results from each one. This is down to several factors.
“An agent will be relying on their experience, they might run the sales data on slightly different factors and other things, like their confidence in the market, will play into the final figure you’re given,” Will said. “It’s definitely worthwhile to get more than one opinion, especially if you’re looking to sell.”
4. Can I use an agent’s market appraisal for bank loans or insurance?
In some cases an agent’s market appraisal can be used for insurance, however it depends on the insurance policy. When borrowing funds from a bank, a valuation from a certified valuer is required. In this case, “the bank will order a qualified valuation to determine the borrower’s position before lending,” Will said.
5. Finally, how do you arrange for a market appraisal?
Getting a market appraisal of your property is easy to organise, and it’s also free of cost. Just contact your local real estate agency, and they should be able to set it up for you. You can also find tools online for an automatically generated valuation through a simple internet search.
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