Do you know what your home is worth?

Knowing what your property is worth helps you make decisions about when is the best time to sell, or how much equity you might be able to access for things like a renovation or using the equity to invest in another property.

A property valuation is used by the banks to determine the value of your property to enable them to use this as security against your home loan. Your finance company may say that you need to have a property valuation when you are looking to buy a new property, refinance, or are looking to gain access the equity in your home.

 

So how can you work out the value of your property? The Home Loan Experts offer a quick guide to help you learn the process of valuing a residential property:

  1. Compare your home to properties that have just sold in the local area – compare sales that are within 1km of your property, have been sold in the last 6 months and are similar to your property, e.g. the same size, the same number of bedrooms,  bathrooms, etc and the same condition. Check out Domain’s price guide here …
  2. You should consider the location, land size, living area, parking, views and standard of finishes when considering if the properties are superior or inferior.

 

If you’re careful and do your research properly then it is possible to accurately value properties, though nothing ever beats having a professional valuation. And make sure you don’t fall for some common mistakes people make when valuing their homes. Read the list of mistakes here …

 

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