How to Value Your Own House – A Complete Guide
Determining what your home is worth is one of the most important steps of selling your property because an accurate and realistic valuation can ensure that you attract serious buyers and obtain the price you want and need to upgrade or move onto your next stage of life. However, having an independent valuation of your property can also be a very emotional time because you know the time, the effort, the love and the care that you and your family have put into looking after the property, and making the house a home.
At the same time, you don’t need to discount all of this effort as simply sentimental value, instead make sure you can identify the features of the property at the time of valuation and on your sales advertising. Plus, there are probably a lot of things which add value to your home which you had taken for granted, such as the size of the backyard, the proximity to the local shopping centre and the fact that your home has two bathrooms when most homes of the same age only have one.
Read on to find out how to accurately determine the value of your home and you can also start a comparison of property valuers in your area now.
Ways to Determine House Value
When you are selling or buying a home one of the most important things that you will do is get someone to value the home. By determining the house value while selling you will identify a price that you will expect to receive. If you are buying you will be identifying a price that you will perhaps pay. Many factors will determine the house value and only a professional should carry them out.
There are many things that will have to be considered when you are valuing a house and knowing how each of these things will affect the value of your home will determined how much you will buy or sell a home for. There are two different ways to determine the value of the house. These are:
- Comparing recent sales. The most common way people will determine how much a house is worth will be to compare the recent sales of similar houses in the area. If no similar houses were sold then you will have to look at other houses that were sold and then add or minus amounts depending on what features the house has or doesn’t have.
- Estimate using the value of the materials. One of the other ways people will determine the value of a house will be by determining how much the house will cost if you had to rebuild it.
How Do I Know What My House is Worth?
One of the most important things that can be done when you are buying or selling a house is estimating the house value. By getting the right value on a house you will be sure that you are paying the right amount for a house, if you are buying, or selling the house for what it is worth, if you are selling. The most common way to determine the house value will be to compare home values. To do this you will want to:
- Talk to your agent. Your real estate agent will have a good idea about how much properties will be selling for in the area. They will be able to give a rough estimate on how much you should be looking to sell your house for.
- Look at recent sales. One of the most effective ways to determine the value of your house is to look at the recent sales in the area. By looking at recent sales of similar houses you will see what people will set as their asking price and what they will get for the house at settlement. This will give you an idea about how much you should be selling or buying for. A recent sale on a house would be a sale that has occurred within the last 6 months.
- Market activity. If the market is strong and houses are in demand then the value of properties may be in the rise. This means that if the market is strong then you may want to ask a bit more for your house as people will be willing to buy it.
Looking to Refinance Your Home Loan? Consider these Options
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 State Custodians Mortgage Company Line Of Credit Loan |
A loan designed to consolidate your different finances and save for the future. | 6.02% | 6.23% | $0 / $345 | 90% | $150,000 / $1,000,000 |
 
|
 HomeStar Line of Credit Loan |
One of the best line of credit loans on the current market with low variable rate. | 6.47% | 6.78% | $0 / $0 | 90% | $250,000 / $1,000,000 |
|
 ANZ Equity Manager |
Access the equity you have saved while enjoying a great interest rate.. | 7.20% | $600 / $150 | 80% | $20,000 / $10,000,000 |
|
|
 NAB Home Equity Line of Credit |
Finance your home upgrade with this loan from a Big Four bank. | 6.47% | $600 / $15 | 95% | $20,000 / $10,000,000 |
|
What are the Main Factors that will Determine the House Value
When your property inspector assesses your home to offer a valuation report, they will be looking at the basis of your home, the places where true value lies. This means that the square metreage of the block can be more important than how recently you repainted the lounge room, as the size of a property is something which potential buyers will look for from the start, while the decor can be easily changed to their liking later.
Therefore your property valuer will look at a number of different factors which will determine the value of a home. These features are:
- Location. The location of the house is one of the main factors that will determine how much a home will sell for. If you have a home that is in a city and has beach views then it will sell for a lot more than a house that is inland that has industrial views. Simply by looking at the asking price of houses you will be able to determine what areas are worth more and what areas are worth less.
- Amenities. If a home has a variety of features then it may get a larger price when it is sold. If a house has a pool then they will generally sell for more than houses that do not. Other features that may improve the value of a house will be views and any additional rooms or self contained flats that are on the property.
- Size. The size of the house is a very important factor also. If a house has a large total area then it will likely sell for more. This may be as a result of the additional features that will come with a larger house but a larger house has additional functionality and will often sell for more. Furthermore, larger houses will generally have more bedrooms and bathrooms. The more bedrooms and bathrooms that are available the more the house will sell for.
- Age. The age of a house will also have a very big impact on the price. A new house will obviously sell for more while an older house will sell for less as the materials are older. However, remodelled old houses will usually sell for quite a bit more than the old houses.
- Condition of sale. In some cases the price of the house will be determined by factors that have nothing to do with the house itself. If a house has to be sold quickly then people will often lower the value of the house to attract interest. This will often happen if the house is being sold as a result of a death or divorce.
- Other factors. There are many other factors that will determine how much your house will be worth. These may include actions by the Federal Reserve Board, national and international events. House prices can change weekly if you watch them and it is often not worth your while to track the smaller fluctuations.
What is a House Worth to You?
Unfortunately sentimental value doesn’t hold much weight in the property market and regardless of how many of your children were raised in the house or how many great memories you have, you will need to be able to identify the features which will add value to potential buyers. Therefore, think about the improvements you have made and the features of the home which make it unique and appealing, and make a list to show your property valuer. The more information you can provide, the more valuable your additions can be to a potential buyer, who wants to know all about the history of the property.
If you are selling a house then you should consider what a house is worth to you. When selling a house you should:
- Point out the features that are beneficial. When you are selling a house you should have an idea about how much you would like for the house. This figure will usually be above the valuation. By using certain methods you may be able to convince people that the house is worth that much. Simply point out all the features of the house that you believe make the house worth as much as you are asking. You may have put new carpets in or added a new deck. All these features can be used as a bargaining tool.
- Show you’re serious. If you are quite firm about what the house will be worth and firm about the features of the house you may convince people that the house is indeed worth as much as you are asking. This is where an accredited property valuation can back up your assertions of your home’s worth.
Compare the Listing Description
When you put a home up for sale then you should have a look at the listing description. The more information you can provide, the better your chances of attracting the right buyer as a long list of features and details has more chance of appealing to a wider audience, rather than house hunters who will pass over a bland looking home, thanks to a bland looking listing.
When you check your home’s listing make sure that:
- Everything is there. You should make sure that all the items listed in the listing description are there and have not been over embellished. If people find that features of the home aren’t accurate then you will disappoint people.
- Everything is accurate. Some listings will have statements such as “square footage doesn’t match tax records”. If this is the case then you should make sure that you know exactly what this means. Will you be buying a property that is smaller than the purchase price?
- You include photos. When a house is listed without any photos, or just a photo from the street, potential buyers are lead to believe the buyer has something to hide, and would rather not show off their home too closely. However, if you are able to include several photos of your home inside and out, of the kitchen, the bathrooms and the living areas you are able to get people envisioning themselves in your home, and they are more likely to want to make the effort to see the property for themselves.
There is a lot more to a house’s value than simply how many bedrooms it has and how big the block is, a house’s value can also be determined by a number of external factors such as the local property market, the prices of recent home sales in your area, and developments which are going on in or around your neighbourhood – for example, if there are new land developments being released and affordable house and land packages being offered just streets away from your home, you will need to be able to tout the benefits of your home above and beyond those of a brand new home in a brand new land release. However, if your home is in an already developed area you can play on the demand for properties as there are no longer opportunities for people to enter the area.
As you can see, determining the value of your home can be a very involved process, but if you are considering moving, or unlocking the equity in your home for renovations or investments, then the first thing you need to do is make sure you have all of the information, in a comprehensive property valuation. Not only will an accredited property valuer be able to tell you the current value of your home, but also whether the improvements you are planning would be over capitalising, or whether you could make more money on the sale by waiting just a few years.
Related posts:
- Valuation of Property
- How Do You Know What Your Property’s Worth?
- Property Assessment
- Home Appraisal | Get the highest value for your Home
- Real Estate Property Value
- How to get a Free Online Property Valuation
- Property Valuation Services | How to Assess the Value of a Property
- Selling Your Home
- House Mapping: Same Neighbourhood, Half the Price
- How to Value Industrial Property
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Ask A Question