When it comes to determining the potential market value of your home, it's all about viewing it through the potential buyer's lens, not just the seller's. Before diving deep, remember that any pre-market analysis remains a conceptual exercise. Yet, if you wish to glean an objective, unbiased estimation of your property's worth; here's a few things to consider.
The principle: Think like a buyer, not a seller
The crux is simple: step into a buyer's shoes. Most buyers initiate their search anchored to their budget, aiming to maximise what it can fetch them in a specific region. Recognising that a property's real value rests in the eyes of its beholder—the buyer—can offer invaluable insights into the prevailing market sentiment.
"Understand your home's value through the eyes of a potential buyer by reverse-engineering their process."
How to find an unbiased glimpse of your home value:
• Head over to www.realestate.com.au. Once there, input your suburb, click the filters tab, and choose 'SOLD'. • Set Your Range: Estimate your home's worth. Then, input a price range 50% below and 50% above this estimation. • Hone in on the Details: Filter for sales within the last 6-12 months and narrow your search to properties proximate to your location. • Sorting & Comparing: Organise your results from the priciest to the least expensive. Use the map function to acquaint yourself with each property's locale. • Analyze Intimately: It's not just about the square footage or the number of rooms. Think of it akin to contrasting hotel tiers. While all hotels provide basic amenities, the devil lies in the details. Assess how closely other properties align with yours regarding features—whether that's a state-of-the-art kitchen, a sprawling pool, or a prime location. • Evaluate Value Propositions: Identify homes that provide more or less value than yours for a given budget. Occasionally, you'll stumble upon outliers—properties that were undervalued or overpriced. Set these aside and focus on the overarching trends.
By embarking on this self-guided evaluation, you understand how a prospective buyer perceives the value of homes, including yours, based on their budget constraints. However, it's vital to acknowledge the inherent nuances in property valuation. If you're seeking a precise figure or feel overwhelmed, consulting a licensed Real Estate Agent might be your best bet. But who knows? You might uncover insights you'd never previously considered, and at the very least, you'll be better informed.