How to figure out how much a property is worth

Real EstateOne of the most common question asked of real estate agents is – “How much is that house worth?”

When it comes to property, it’s hard to give a precise value, because no two properties are exactly alike.

Even when you have two homes side by side that have the same specifications, they can end up with vastly different selling prices. This could be because of a small differing attribute that one property has, or simply because there was a high bidder around for one property and not the other.

However, while we have established that there’s no way of pinpointing an exact property value, there are ways to estimate a price range.

What have similar properties sold for?

Compare the property in question to other recently sold properties in the area to get an idea of what it might sell for. Try to find a property that has the same number of bedrooms and bathrooms and the same land size when doing your comparison. Other factors that will have an influence on the price include views, the condition of the property, age, property style… the list goes on.

Of course, while it’s handy to research other sold properties in the area, no other property is going to be exactly the same, and time will be a major factor as well. If it has been years since the last similar property was sold in the area, then there is a good chance that property values have gone up in that time.

Is there anything that makes the property particularly special?

It is much harder to price a property that is particularly rare or doesn’t come onto the market often. Heritage properties for example can be worth considerably more because of the unique history associated with them. Properties with desirable views or other features that are rarely available on the market are also likely to have an increased price tag.

Is the property in hot demand?

Property trends change regularly and buyers will be after different things depending on what’s happening at the time. For example, when zoning laws change you might find that some properties become much more popular because developers suddenly want to snap them up. Other influencing factors could include things like homeowner grants, interest rates, property laws, regulations or even TV shows. All of these things affect the amount of buyers in the market and how much someone might be willing to pay for a particular property.

So what is the price?

All in all – there is no “right” price for a property. Every property is worth something different to different people, and the only way to determine a final price is through negotiations between the buyer and seller.

If you would like to discuss property values in the Bacchus Marsh area, or would like a property appraisal using our agent’s local market knowledge and experience, then please don’t hesitate to get in touch with the Arbee Real Estate team.