How much is my property worth?

Planning on selling, refinancing, or renovating your home? Thinking about your next move? Start by understanding how much your current property is worth. That will give you a more accurate financial picture and – likely – more opportunities.

5 methods for finding out how much your property is worth

Market conditions, prices, and other factors associated with buying and selling can change in an instant, making it difficult to keep abreast of the value of your home. That is why it is a good idea to use resources that can provide you with a more accurate assessment of its worth.

Here are five practical methods you can employ to gain a clearer appreciation of your property’s value. Once you’ve got a handle on that, you’ll be able to make better strategic decisions.

1. Online property value estimates

The internet is a prolific tool when it comes to figuring out the value of your home, but proceed with caution. Popular platforms use automated models and property data to come up with figures. Typically, this is drawn from recent sales, listings, and suburb property values.

However, treat this information as a general guide, rather than the truth.

In order to get a more accurate representation of property value estimates, speak with a trusted local real estate agent. In addition, some Australian banks also provide online property value estimators as part of their refinancing tools.

These applications do provide a fast and convenient guide, so they can be very useful if you just want a general sense of what your home might be worth. However, it is not advisable to take them as gospel. They are estimates and not valuations based on in-depth property reports.

It is important to keep in mind that online tools rely on algorithms. They don’t consider factors like your home’s condition, renovations, unique layout, or even the view. Moreover, their accuracy also depends on how many comparable properties have sold recently in your street and suburb.

For more detailed data, you can subscribe to platforms like CoreLogic or SQM Research. These services can provide specific property market analysis, including sales history and auction results for specific streets and suburbs.

As a more general guide, you may also want to check out our NSW Property Market Recap for 2024.

2. Real estate agent appraisals

Online tools are a great starting point, but they can't replace an expert appraisal or real estate valuation. If you’re serious about selling or refinancing, a property appraisal from a local agent will provide you with a much clearer insight.

Real estate agents work in your neighbourhood every day. They understand factors like suburb property values, buyer demand, and market shifts. Indeed, they’ve most likely handled properties similar to yours and are best placed to explain how unique features, conditions, and recent sales history will influence your home’s value.

A real estate agent appraisal includes current listings, off-market sales, and comparable property data. This personalised property market analysis often does not appear on public websites and won’t be taken into account by algorithms that formulate online property valuations.

It is worth noting that an agent’s appraisal isn’t just based on numbers – it’s guided by what’s happening on the ground. This includes buyer interest, open home feedback, and trends in your street or suburb. Subsequently, the result is a more accurate estimate of what you could expect in today’s market.

At DiJones, our local agents offer free property appraisals without obligation. They can be a reliable source of concrete data and expert advice when weighing up your options.

3. Certified property valuations

Property valuations are formal, legally recognised assessments that are carried out by qualified professionals who have completed an API CPV-accredited course. They are most commonly used by banks and financial institutions during the loan approval process.

If you're buying, refinancing, or applying for a home equity loan, your lender will typically arrange for such a valuation to take place. This will help them determine how much they're willing to lend.

A certified valuer will inspect your property, considering its condition, location, and features. On top of that, they will also compare it against recent sales history and suburb property values. Once completed, they will produce an official report that outlines your property's market value at a specific point in time.

Certified valuations are designed to minimise financial risk for lenders and so they tend to lean on the conservative side. This means the figure they derive may sit below what a buyer is willing to pay on the open market. Don’t be too disheartened if this is the case. Competition or emotion is often influential in driving up the final sale price.

How much do property valuations cost? Some lenders offer property valuations free of charge. Others may charge between $300 and $600. Overall, they are not seen as the definitive tool for setting your asking price, but rather as a certified valuation that is imperative for legal, financial, and insurance purposes.

4. Independent property valuations

If you would prefer a formal assessment outside of the bank process, you can arrange your own independent property valuation. These are carried out by certified valuers who are the same professionals often used by lenders.

Some people like to engage them directly because the report is theirs to use however they need. If you decide to engage their services, an independent valuer will visit the property; once there, they will conduct a full internal and external inspection.

This will involve assessing your property’s size and features. Factors they will note are the number of rooms, fittings, condition, and the land size.

Once completed, they will then provide a written report that confirms its market value. This report will take into account local property data, comparable sales, and recent trends in the area.

Valuers are trained to provide objective, conservative real estate valuations. The figure they determine can be a helpful reference point for legal or financial planning. This is especially true if you plan to refinance, purchase, or divide assets.

While independent valuations can be useful, they do come at a cost. This will vary depending on the service provider, the property's location, and what is involved in producing the report for you.

5. Research recent property sales yourself

If you’re keen to understand the local Sydney property market better, a good way to do this is to look into recent local sales. Analysing past transactions will help you gauge where property values are trending. It also indicates what buyers are willing to pay in your suburb.

There are several ways you can find this out. Property portals display recent sale prices. They also have photos and sales history for many homes. Or you can also reach out to your local real estate agency for property prices or view their website for sold prices.

Other great ways to stay informed are to attend open homes and local auctions. Seeing how properties are presented and how buyers react to them can be invaluable. You’ll get a better understanding of current demand and pricing patterns.

Many real estate agents, including DiJones, regularly share suburb updates and auction results through social media channels. Additionally, you’ll also find plenty of insights by reading our blog articles on the local Sydney housing market.

Ultimately, the more you can build your own knowledge base, the better. Doing so will help you make savvier strategic designs whether you’re buying, selling, or refinancing a property.

Additional tips to consider

To get the most accurate sense of your property's value, here are a few extra tips to help you build a clearer picture.

• Consider recent improvements: Renovations, upgrades, or even landscaping can impact your property's market value. It is a good idea to keep records and receipts to support future appraisals or valuations.
• Factor in the current market: Property values are influenced by broader economic conditions, interest rates, and seasonal demand. Therefore, it's worth considering the timing of your valuation.
• Check land values: You can look up your current land value through the NSW Valuer General. This will help you understand how much your land is currently contributing to your overall property worth. Visit the NSW Government land values portal to learn more.
• Review comparable sales: Look at recent sales of similar homes in your area. Comparable properties provide a good benchmark that can support or challenge a given estimate.
• Choose a local, experienced valuer: If you engage a certified valuer, make sure they have experience in your suburb. Local expertise generally adds more credibility and accuracy to the assessment.

Final thoughts

If you are wondering how much your property is worth, each of these tools and methods can help you determine your home’s value. They differ in nature and the level of detail they provide. The one you choose will depend on what you intend to do with the information.

At DiJones, our expert agents have an in-depth knowledge of the local Sydney property market. Please get in touch with us to arrange a free property appraisal. We’ll provide you with an accurate understanding of the current value of your home.

FAQs

What’s the difference between an appraisal and a real estate valuation?

An appraisal is an agent’s informed estimate of market value. A real estate valuation is a formal report from a certified valuer. It is often used for legal or lending purposes.

Is a property appraisal free?

Most real estate agents (including DiJones) offer free property appraisals. They base them on local property data and recent sales.

Can online tools replace an agent valuation?

Online tools use algorithms to provide quick property estimates. However, they don’t consider condition, features, or buyer demand like an agent valuation does. That inside knowledge and expertise makes all the difference.

Why do property values vary so much?

Property values depend on various factors. They include market value, property size and features, location, and comparable property sales. That is why they can be markedly different.

How accurate are property value estimators?

Property value estimators offer a starting point, which may or may not be accurate. However, this accuracy will improve when it is supported by property market analysis and on-the-ground insights.