Posted on 03/10/2016 by Todd Pearce
Property valuations are only an opinion of what a buyer may be willing to pay in today’s market. It should come as no surprise that depending on who you ask, you will likely be quoted a different price.
Unfortunately there is no scientific formula that you can use to determine your home’s value. Your opinion will always be swayed by your personal attachment to the home. This is quite normal. The emotional attachment to our own home, commonly referred to as the “Endowment Effect”, is hard to shake off. You cannot rely on the agent’s opinion on the price of your property either, because the price they quote you may be designed to win the listing. Their chances of being selected to sell your home increases if they are optimistic with the price. A professional valuation by a qualified valuer will give you the closest indication of what your property is worth but this will cost you several hundred dollars. Ultimately the only opinion that really matters is that of a genuine buyer. They are the only ones who are prepared to give you their hard earned money in exchange for your home.
So What Do You Do?
You can start by looking at comparable sales in the area. This is your best indicator and it’s what property valuers and real estate agents use as well. There is much of this data readily available nowadays via the internet. By analysing the recent sales data of similar homes in your area and provided you draw realistic and unbiased comparisons you can estimate the value of your home. To arrive at a “fair market price” make sure you’re comparing apples with apples and also allow for the “Endowment Effect” in your calculations. A common problem with many sellers is they focus on what they need or what they’d like to get, which of course has no bearing whatsoever on the market value of their home. The only way to truly know what your home is worth is to list it on the market with a private sale agent and find out what genuine buyers are prepared to pay. This may cost you some advertising dollars. If the price you are offered allows you to make a move, you can sell. If it doesn’t, you may choose to stay.
Always know with Page & Pearce Real Estate we will not charge you anything unless you sell. This is our “No Sale - No Charge GUARANTEE”
Call 07 4727 2400 to arrange a FREE Market Appraisal on your property today with one of our Sales Consultants or CLICK HERE to email us your Market Appraisal request.