As real estate agents, we understand that appraising the market value of your property can be a daunting task. However, it’s crucial to have an accurate understanding of your property’s worth to make informed decisions about selling or refinancing your home. Let’s explore how a residential property is valued and the factors that can affect its price.
First and foremost, location plays a critical role in determining a property’s value. Homes in highly sought-after areas with access to transportation, schools, and shopping centres typically have higher values than those in less desirable neighbourhoods.
The size of your property and land is another significant factor. Larger properties generally have higher values than smaller ones. The condition of your property is also essential, as well-maintained homes are more valuable than those that require repairs or upgrades.
Additionally, amenities like a pool, garden, or garage can significantly impact your home’s value. And finally, market conditions must be considered. During a seller’s market, when demand outstrips supply, property values typically rise. Conversely, during a buyer’s market, when there are more homes for sale than buyers, property values may fall.
As a homeowner, there are steps you can take to maximise your property’s value. Maintaining your property is key, and regular upkeep such as fixing leaks, repainting, and replacing outdated appliances can maintain or increase its value. Making upgrades and improvements like adding solar panels, installing air conditioning, or adding a new bathroom, can also help boost your property’s value. Finally, enhancing your home’s curb appeal, by improving landscaping, painting the exterior, or upgrading the front door, can also add value.
It’s also important to understand the difference between a real estate market price appraisal and a bank valuation. A bank valuation is conducted by a registered valuer to determine the value of your property for loan purposes. This type of valuation is more often requested by buyers who are seeking finance from a bank to complete the purchase of a property. The bank needs to know whether or not the property meets their lending criteria and that the property’s maximum loan/mortgage value, as assessed by the valuer, is secure, so their valuation may be lower than the actual market value.
Real estate agents are asked by home owners to assess the current market value of their home so that they can have an indication of what their home may be worth at the time of the assessment. They may just want a market value update to see if their property has changed in value from when they purchased it or they are looking to find out what they may get for their property should they sell now or in the near future. Under the NZ Real Estate Agents Act 2008 real estate agents are required to provide proof of how they have assessed the market value of a property by using recent sales of comparable properties that are in the immediate neighbourhood or location of the property as well as other market indicators and factual information that show how they have assessed that property’s current market value. All the information is presented to the property owner in a detailed report that shows how the real estate agent determined the market value price range of that property.
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Understanding the factors that influence your property’s value, maintaining and improving your home, and being aware of the differences between real estate market price appraisals and bank valuations can help you make informed decisions when it comes to selling, refinancing, or applying for a loan.
Our team are experts in properties and market price appraisals in your neighbourhood and we can offer you a no obligation-free appraisal of your property. We can also help you with suggestions that will increase its market value if you are considering selling.
Call us anytime….. we’re here to help you to get a premium price for your property. For all things real estate chat with Matt his advice is given freely and without obligation
Thanks for reading, have a successful day
Cheers Matt
