When selling, most vendors obviously want to know, “How much is my property worth?”
Everyone wants to make money when they sell their property. After all, your home (or commercial investment) is likely to be one of your most valuable assets.
But figuring out how much your property is worth isn’t always so straightforward. That’s why so many sellers turn to professional valuators or online property evaluation tools for help.
However, if you’re looking to sell your own property, you must know your home’s potential before passing the valuation task over to someone else. And you might consider implementing some clever tips and tricks to boost your property’s selling potential before calling the professionals in.
Read on to learn how to evaluate your property’s worth accurately and make the most of its potential.
How much your property is worth depends on what buyers are willing to pay.
It sounds obvious, but it’s true: ultimately, your property is worth what a buyer is willing to pay for it.
When quality listings are scarce and the market is determined (for example, the exodus from capital cities to regional areas during COVID or the pre-COVID Sydney market), an average property’s price can inflate exponentially.
So how do you decide what your residential property’s worth in the current market? Here are five steps to making a realistic evaluation:
Step 1. Take a step back emotionally. When you’ve put your heart and soul into making a place a home, it’s easy to inflate its value. But don’t allow this emotional attachment to get in the way of how much it’s really worth. It’s vital you remain objective throughout the valuation process to remain true to a realistic price.
Understand that buyers will be looking purely at the potential your home offers them in the future – and they’re less likely to feel sentimental about the efforts you’ve made over the years to forge a home. Try seeing your property from their perspective without nostalgia’s rose-coloured glasses to stay realistic about your home’s value.
Step 2. Take advantage of the tools at your disposal. If you don’t know where to start determining your property’s worth, PropertyNow offers our community a helpful free property value report. Supported by Australia’s largest and most reliable property data resource, Corelogic, it will give you a current and realistic value of your property in minutes. Find out essential info such as your property’s entire sale history, listing advertising history, recent comparable sales in the area and a profile of your suburb.
Step 3. Keep an eye on your local market. During COVID, many area markets are changing faster than sales data can keep up. Keep a close watch on local sales via realestate.com.au to get an accurate snapshot of what’s happening to prices in your immediate area and adjust your property value accordingly.
Step 4. Monitor market feedback for real-time information. How the market reacts to your sales estimate can deliver valuable insights into whether you’ve accurately evaluated your property’s worth. Remember, it’s easier to go down than up, so err on setting your price on the high side at first. If you get little to no interest at all when you start marketing, you’ve probably set your property price too high. If you get an insane amount of interest, you may have set it too low.
And one final thing. Never, ever price bait. Australian laws prohibit practices like price baiting when selling your property, so be sure to avoid unethical negotiation tactics. It’s illegal to misrepresent your property in your marketing campaign. If you’re offering a ballpark price, you must list it as a single figure or a range of up to 10 per cent.
3 cost-effective ways to boost your property’s perceived value.
While there are some things you can’t easily change—like your home’s number of bathrooms—there are some aspects you certainly can. Here are three cost-effective ways you can boost your property value yourself:
Stage your home.
Some changes have a more significant impact when you’re short on time and money. Showcase your home’s best assets, impress buyers, and sell quickly for the highest price possible by focusing on your living room, kitchen, bathrooms, bedrooms, and outdoor living spaces. These all give you greater bang for your buck. Declutter, clean, or replace appliances, remove personal items, and get rid of any nasty odours. Also, remember that staging your property isn’t just for potential buyers. If you’ve got a professional valuator, photographer, or other consultant visiting throughout the sale, make sure you dress to impress. First impressions and word-of-mouth are potent tools—see every inspection as a potential opportunity to sell.
Clean up the garden.
It’s a good idea to make sure the garden is neat and presentable before putting up the ‘For Sale’ sign. A buyer will see the garden first, so you’ll want it to capture their attention and to get them excited for what’s inside. At a bare minimum, maintain plants well and keep the area clean. Pull out weeds, rake leaves, hose the driveway and footpaths down, and prune trees and shrubs so everything’s neat and tidy.
Upgrades and renovations are big considerations for many sellers before putting their property on the market. But what renovations will maximise your returns? The most cost-effective way to make a significant impact on your sale price is to install some fresh new carpet in your bedrooms, particularly if they’re looking a bit tired. Upgrades to bathrooms and kitchens also add instant value but keeping the design neutral is crucial to appeal to as many buyers as possible—and remember not to overcapitalise.
A complete property face-lift is more accessible than you think. If your property needs sprucing up before you sell, here’s how to pay for those renos after the sale goes through.
Compensate for your property’s downfalls to maximise your selling price
Even the best properties have room for a boost. Whether you just don’t have time to make improvements or there’s no elegant solution, try to compensate for areas that are lacking.
- Walk-in-robes gone walkabout? You don’t want to make this look like an issue to interested buyers. Detract attention from this potential shortcoming by having plenty of personal storage and leaving nothing lying around. Decluttering is key.
- Impractically shaped rooms? Make your space look more usable by removing or downsizing furniture to declutter the room. Or use furniture to create “zones” that help isolate irregular spaces—set up a conversation area with a sofa, coffee table, and set of chairs then display an artwork, bench or desk on the awkwardly shaped wall.
- South-facing property? Try to sell in winter or—better yet—hold twilight open-for-inspections to show it off at its best in the evening light. This will draw attention away from any lack of natural light.
Highlight features to add value and convince property buyers to pay top dollar
Your home is more than just its square meterage and bedroom count. Playing up its unique features and style can help your property’s value find its edge.
Every buyer has a wish list /checklist—tick off as many as possible to create greater interest and boost your sale price. Here are some ideas to get you started:
Storage always sells. Everyone loves a clean and tidy space. So, if you’ve got enough storage to hide away those large appliances, flaunt it.
Consider adding some smart storage solutions if your home lacks them. It’s a great way to keep costs down, so you don’t overcapitalise while showing buyers your home is cosy, easy to live in and well-organised.
Don’t know where to start? Look at solutions for:
- Your entrance hall. First impressions matter! Shoe drawers and closed storage for keys, sunglasses and wallets reduce clutter in the area a buyer immediately sees entering your home.
- Your kitchen. Assume buyers will open all your drawers and cupboards! Keep them tidy with under sink organisers, drawer organisers, pantry containers, pull out storage and more. Keep benches free of clutter.
- Your laundry. A well-functioning, neat laundry area can wow a buyer. Hide things like irons, ironing boards and chemicals in cupboards and recover your ironing board to freshen it up like new.
- Your bedroom. We spend a lot of time here, so it’s essential to make it an inviting, relaxing space free from busy clutter. Take a good look at your wardrobe—can you upgrade it to make It more functional? If not, remove any excess clothes and install some wardrobe boxes and dividers to help give the impression it’s roomier and well-organised.
Got something unique? Buyers love a point of difference. Decorate rooms to highlight these fantastic features, and don’t forget to talk them up when you’re writing your property description. The features that buyers find most desirable include:
- Walk-in wardrobes
- Upgraded kitchens
- Hardwood floors
- A separate laundry room
- Large garages
- Environmentally friendly fixtures
- Neutral colour schemes
- Multifunctional spaces.
Street appeal matters. Homes that are neat and tidy are more likely to sell quickly. The entrance to your property is the first thing buyers see, so a quick sharpen up of your home’s exterior is an easy, cost-effective way to bump up its value. Here’s how:
- Mow your lawn, remove dead plants, clean up the clutter, and rearrange the garden and pathways.
- Clean your windows and outdoor items.
- Store away any objects that detract from a positive first impression.
- Give your garden fences a fresh coat of paint.
- Test outdoor lighting to make sure it works well.
- Add simple elements in a symmetrical composition for a more inviting entryway.
- Pressure-wash often neglected areas, such as driveways, sidewalks, the garage and the front porch.
- Check your roof for missing shingles or cracked tiles.
- Add a well-designed exterior lighting system to convey safety and security.
“Location, location, location.”
It’s no secret why this is a real estate agent’s favourite saying! Your property’s location has a considerable part to play when determining its value. Two similar properties just streets away from each other can be valued vastly differently, simply based on their postcode.
No matter what reputation your property’s suburb has, there’s always something nearby to draw buyers in. Highlight schools, transport, shopping centres, entertainment, and recreation hot spots within easy distance of your location to truly show what your property has to offer.
How much is my commercial property worth?
Commercial spaces are valued a little differently than residential properties. While the basics still apply, a few extra details can affect your property’s value.
Long-term tenancy agreements with well-mannered occupants add exponential value to a commercial property. The longer their contract, the better.
Most commercial buyers aren’t looking to move into the space themselves, so a reliable income stream built into their purchase is a huge bonus.
The bottom line.
It pays to know your property’s features and potential inside and out before determining its worth, whether you decide to value it yourself or hand the task over to a pro.
The critical thing to remember is that your property’s worth is precisely how much a buyer will pay for it. Online evaluation tools can only assess what you show them, so make sure you know exactly what you’re sitting on.
Finally, keep a solid number in mind that matches your expectations and needs. With some smart, inexpensive upgrades and staging tactics, you may be surprised at the price tag you can place on your property.
Get the most out of your sale with PropertyNow.
Our experienced team at PropertyNow is ready to help you sell your property privately—no matter what it’s worth. Whether you’re a first-timer or a seasoned seller, we’ve got the resources and support you need from property valuation to SOLD.
Get in touch today!