We often have buyers and vendors ask us – what is this property worth? Well, in a supply-constrained market, the ‘worth’ or value of a given property, is whatever someone is prepared to pay for it.
This may sound strange to those entering the market, but it makes sense when you consider the property market is all about supply and demand – and currently there are many cashed-up and emotional buyers ready to make their move.
Nonetheless, as a buyer, there are many ways you can research a property and estimate its value. It is critically important to arm yourself with this research, so you can realistically understand if a property is within your budget, and also so you do not overpay for a property.
Starting your online research.
There are many resources you can tap into to access listings and market data across Australia. Start with www.realestate.com.au and www.domain.com.au in order to view current listings, and recent sold results.
This information will give you a good feel for the local market, an idea of the number of properties fitting your specific requirements, as well as the average price they are selling for. You’ll be able to easily filter search variables such as house type, number of bedrooms and the number of bathrooms etc.
The Domain House Price report and Suburb Profile can help you establish an informed view of what your target property is worth. Check out:
Finally, other credible sources such as CoreLogic RP Data and APM Price Finder are extremely useful too.
Some lenders, and most brokers, offer a service where they will generate a property report on a specific property that you are thinking of purchasing.
A property report is a document that provides a range of information about a specific property, such as its estimated value, sales history and details about the suburb. This can be helpful, as it will typically list similar properties that have sold recently, and other important information – such as demographics, median sales prices trends etc.
Remember, when you are trying to determine a home’s value, you need to look at recent sales of similar properties with the following characteristics:
- Sales within 2 km of the property, in the same suburb
- The same property type (house, townhouse, unit)
- The same number of bedrooms, bathrooms and car spaces
- The same, or similar land size
- The sale occurred within the last 3-6 months
- Property is in similar condition/has a similar level of improvements (i.e. both have a pool, renovated kitchen, etc)
However, while it’s very efficient these days to conduct your own online research about a suburb and a property, nothing can beat seeing the suburb and property first-hand with your own eyes.
Taking your research to the street.
While online research is great at arming you with quantitative data, it’s very important to get a sense and genuine feel for the property, the street and the suburb too.
Always check the suburb to see if it’s a nice, safe place where you’d want to live long-term – this will also help you form a view of estimated price. Here are a few questions to consider as you walk through the street and suburb:
- Does the area appear safe and family-oriented?
- Is it a busy suburb or street? Can you hear traffic noise when inside the home? Is the street a thorough-fare during peak times? What is traffic like on weekends?
- Are lawns and front-gardens maintained by neighbours? Does it appear to be a tight-knit community? Do neighbours appear to talk with each other?
- Does the area appear to have more renters, or owner-occupiers?
- Are there amenities nearby? Where is the nearest hospital or medical centre? Are there cafes and local shops nearby?
- Are there parks and nice public spaces nearby?
- Are there primary and secondary schools nearby and does the property fall into any school zone(s)?
Try visit the property and street multiple times, both during the week and weekends. If you come across any neighbours, ask them what they think of the neighbourhood too. This will all help with your research and help you form a view of the property’s value.
Always seek advice from a trusted professional.
From a local perspective, your local One Agency team can provide you with an in-depth local market report detailing the strongest growth areas, the fastest selling areas, the top-performing local suburbs, median sales prices, rental yields, days on market metrics and more. Understanding the local market is very important, so make sure you contact your local One Agency team – they live and breathe real estate in your local area each day, and are a great source of valuable local market data.
Purchasing and investing in real estate is exciting and when done well, can significantly transform your life. Now is a great time to get started on your property journey, or continue climbing the property ladder, as interest rates are at an all-time low. Our agency is also seeing great quality supply begin to come onto the market, and this is set to continue as we progress through Spring.
To learn more about the benefits of real estate investing and what prices may do long-term, contact us at One Agency. With One Agency being one of Mildura’s most trusted real estate agencies, we are well placed to provide you with our view of the current market based on our local experience. We’ll thoroughly guide you through the process and help you take advantage of this opportune time in the market.