How to determine the value of your property

But if you're considering selling, you want more than 'maybe' to ensure you're putting your house on the market at the right amount.

So, how do you determine the value of your home? There are a few different methods to use, and we'd recommend using a combination of at least a couple to reach your final figure:

Automated price estimates

If you're just getting started in the process of selling your home, an automated price estimate may be the ideal way to get a stronger idea of what, exactly, your financial position is. While automated estimate sites, like Domain for Owners are on the more generic side, the information they provide can be invaluable in deciding whether selling your property is worth doing right now.

Typically, automated price estimate services work by plugging specific data in about your property, which is then used to compare your home against others in the area. At a minimum, you'll probably need to provide the location of your property, as well as any features such as the number of bedrooms and bathrooms and the size of the property. The estimate service will then get to work trawling current properties for sale to produce a roundabout number that your property could sell for.

One of the most significant benefits of starting with an estimate is that these online services are entirely free more often than not. That means you benefit from insight without any of the costs of valuations – which is ideal if you're on the fence about selling. A price estimate is just a starting point, but that doesn't mean it's not a valuable way to get clued in to what you could get for your property with a relatively large margin.

If you're in an area with a high number of property sales, you're far more likely to get an accurate estimate than you are in an area where few sales have taken place. That distinction is worth considering before you use your estimate as a measure of the worth of your property.

A formal valuation

If you're serious about selling, the next thing on your list should be to get a formal, complete valuation carried out by a trained professional. An accredited valuer can inspect and look at every aspect of your property through an expert eye, allowing them to provide a far more accurate number for the overall worth of your property.

While both estimates and valuations have specific processes to enhance results, valuers are held to a much higher set of professional standards. This high standard means everything is factored into your personal valuation, from zoning to the current market conditions and the condition of your property. As such, the number you get will be based solely on the valuation of your home in particular, and not homes like yours in general.

Typically, valuations are requested by lenders to have an accurate, up to date value of the property for the mortgage application process. As an evidence-based process, valuations are considered the standard for how to value a home. They meet legal guidelines and use vital information to provide an accurate, helpful figure following an inspection.

A valuer will also consider factors such as marketability, which can impact the value of a property overall. However, you do pay for this extra level of expertise. The average valuation for a homeowner costs anywhere between $300-800, depending on the area and type of property.

An appraisal by a real estate agent

As local experts, estate agents are a valuable resource when it comes to finding out the worth of your home. Their in-depth knowledge and understanding of recent property sales and trends in the area can allow them to properly appraise your home and reach a relatively accurate final value figure. One of the most significant benefits of appraisals is that they are typically free and offer more accuracy than other free solutions such as online estimates.

The typical process for appraisal may vary from agent to agent. Usually, your property will be compared to others in the area. Those checks will include looking at what's been on the market for months as well as properties that have sold quickly. The unique insight estate agents have into what buyers value the most, what a particular location is like, and what's likely to change in the future is invaluable to achieving an exact price.

In most cases, working with a local estate agent is the best option for you. A local service is far more likely to know and understand the area and have a solid foundation of sold properties to use in comparison. Requesting an appraisal is typically quick and easy, too, and you can schedule an estate agent to come out at a time and date that works best for you.

Testing the waters

What else is better for getting the correct valuation than diving straight into listing? Taking your property to market can be one of the ways to understand what your property is worth. If feedback from multiple potential buyers is that you're valuing your property too high, this may suggest that your current valuation isn't realistic for the market you're in.

The risk of leaping headfirst into getting your property on the market is going too low on your pricing. If your property goes up below market value, it's likely to get snapped up quickly – leaving you out of pocket. It's always a good idea to get at least an appraisal and check out automated estimate services to ensure you aren't losing money on your home before it's too late.

If you're considering selling your home in Brisbane, working with a trained and qualified estate agent is the ideal place to start. Our expert team are here to make your property sale easy. Get in touch with Sparrow Real Estate today to get a free appraisal for your property.