Valuing Property - what you need to know?
Whether you are looking to buy or sell, trying to assess the value of a property can be one of the most difficult – yet probably the most important – issues to get right. We spoke to Bill Fatouros, Director of Independent Valuers – LandMark White and asked him what is important when assessing the value of a property.
How important is location when assessing the value of a property?
Mr Fatouros states: “While there are a range of factors that go into determining the value of a property – location is crucial because it’s not something you can change.” View or outlook; proximity to schools, shops; and how close it is to transport should all be taken into consideration. “With travel times to work becoming longer, the value of a property often reflects how close it is to the city or transport such as train lines.”
Why you should look at recent sales
This is one of the easiest ways to determine a property’s value. “Recent sales will guide you on what price to offer or expect for your property,” recommends Fatouros. “And be sure to inspect any similar properties on the market in your area, so you can decide for yourself how they compare to your property.” Recent sales can also be found on websites such as domain.com.au.
If you would like a recent sales history report (free of charge) in the area you are looking to buy in, please contact us.
How important are age and condition when considering the value of a property?
Fatouros says the age of a property cannot be ignored as it will play a significant role in determining how much work needs to be done down the track. “Buyers need to think about the future of the property and not just the immediate state it is in. One day when you come to sell it, any substantial upgrades will eat into your growth-based profits.” And getting a building inspection is essential as the results will have a significant bearing on the value of the house - and subsequently, what price should be offered.
One of the first places many people look when inspecting a property is the kitchen. “A new kitchen can have a positive impact on the value of the property. Some buyers aren’t interested in a place that needs a full kitchen renovation.” On the other hand however, there are plenty of buyers who seek out places needing renovation, as they prefer to do the work themselves. “We see both kinds of buyers, but typically a kitchen and bathroom renovation can add a considerable amount to the value.”
What are the traps to avoid?
There are a great many traps people can fall into when seeking to improve the value of their property. Fatouros states: “The biggest trap is overcapitalization. The trick is to upgrade your property while not spending too much, so your property is not over-priced compared to similar places in the area.”
And any renovations should be done with the buyer in mind. Fatouros recommends décor that is neutral and is likely to appeal to the majority of people. It is also crucial for all work to be fully certified and approved by council. “Unapproved renovations can have a negative result on the value of your property come sale time.”
Finally, there are some simple ways homeowners can boost the value of their property come sale-day:
- “The presentation of your property must be pristine, including all paintwork.” Furnishings should be minimal and all clutter removed.
- Repair any defects such as rusty gutters, mould and cracked tiles.
- Opening times are crucial. You need to choose the most favourable time to show your property. Dark places need to be showed when they are at their brightest.
- Traffic can put some buyers off, so it’s best to plan open-houses during the least busy times.
- The little things count. While you might laugh at the thought of baking bread or a bowl of freshly ground coffee beans on the counter, Fatouros recommends anything that subtly enhances the appeal of the property. “Don’t over do it, but little touches such as flowers can add to the value of the place.”
