If you’re considering selling your property in Canberra, we highly encourage you to seek advice from your local real estate experts to help you understand the current value of your property and what you can do to improve the value prior to sale.
Advertising your property for sale without completing the necessary upgrades, or knowing a realistic price guide, can be detrimental to the outcome of the sale.
This is why our team at Jonny Warren Properties are dedicated to providing you with the insights you need, in order to understand the market appraisal process, and some helpful tips and tricks to help you improve the value of your home, before it is listed for sale.
In this guide, we’ll introduce you to the world of ‘Market Appraisal’ to help you understand what it means to get your property appraised in Canberra, and walkthrough the points of interest so you can prepare your property in advance to maximise the overall value of your property.
What is an Appraisal Report and Why Do You Need It?
A market appraisal, also known as a property valuation or real estate appraisal, is the estimated value of a piece of real estate, at a specific point in time.
Market appraisals are typically conducted by professional appraisers, who use their expertise and knowledge of the local market to determine the value of a property.
There are several factors that can influence the value of a property, including its location, size, age, condition, and features.
Professional appraisers will consider these factors and compare the property to similar properties, that have recently sold, in the area to determine its value.
Market appraisals are often conducted for a variety of purposes, including when a property is being bought or sold, when a mortgage is being taken out or when a property is being refinanced.
They can also be useful for estate planning purposes and when determining the value of a property for insurance purposes.
FAQ: How Does a Sales Agent Appraise the Value of My Property?
When appraising the value of your property in any market, an experienced agent has the skill to weigh up a complex combination of factors.
Recent sales in your local area offer a guide to what buyers are paying for comparable properties.
Location is also a key factor, including your suburb, street and desirable features such as whether your property backs onto a reserve, or offers undisturbed views, and so forth.
The credentials of your land will also weigh into a price appraisal, such as overall block size, aspect and view lines, if applicable. When it comes to an apartment, factors that influence price guide include the age of the residence, the quality of the finishes and fixtures, and amenities such as whether the complex offers a pool, tennis courts or rooftop terrace, etc.
The state of the market also comes into play, including stock levels in your local area and the level of buyer demand, while broader economic factors such as restrictions on lending, interest rates, elections and inflation can all impact what buyers are prepared to pay.
FAQ: What Does an Appraiser Look for in My Property?
It’s not every day that you hire someone to go attend your property to tell you how much it’s worth, but when you do, it can be a lot of fun!
If you’re considering selling your home (or buying a property), the first question that usually comes up is “How much should I ask for?”
Well, the answer isn’t always clear-cut – and in some cases, it might even be complicated. That’s where a professional appraiser comes in.
A professional appraiser will look at all aspects of your property and use their report to determine the estimated value based on comparable homes in your area.
Included on the report:
- Square footage of the property and house
- The physical condition of the home (including appearance, cracks, water damage, etc.)
- The structural integrity of the house
- Quality of landscaping around the house
- The number of bedrooms, bathrooms, and car spaces
- Any amenities or renovations, such as fireplaces, swimming pools, lighting, plumbing and finishes, such as hardwood floors or marble countertops, etc.
What is the Importance of Getting a Market Appraisal in Canberra?
To Maximise Your Property’s Worth
A professional appraiser uses their expertise to provide an objective opinion on the value of your property, which may differ from the proposed asking price or purchase price. The appraisal process involves collaborating with the homeowner to understand their goals and motivations for selling the property.
What are the things being considered?
- The size of your property
- The age of your house
- Past sales data, for similar properties in your area
- Your property taxes paid annually
- Any outstanding liens or claims against you or your property (such as loans held by banks)
To Better Understand your Mortgage Options
In the context of mortgages, a market appraisal is important because the value of the property, being used as collateral for the mortgage loan, will have a direct impact on the loan amount that a lender is willing to offer.
If the market appraisal is lower than the purchase price of the property, it could indicate that the property is overvalued. In this case, the lender may be less willing to offer a loan for the full purchase price, or may require the borrower to provide a larger down payment.
On the other hand, if the market appraisal is higher than the purchase price, the lender may be more willing to offer a loan for the full purchase price, or may be able to offer a lower interest rate on the loan.
In short, a market appraisal is an important factor that lenders consider when deciding whether to approve a mortgage loan and, if approved, what terms to offer.
An Official Market Appraisal Will Give You Power to Negotiate
A market appraisal can assist to facilitate a smoother and more informed negotiation process for both buyers and sellers. It also establishes a fair and realistic price range for your property to help kickstart the negotiation process.
A market appraisal can be used to:
- Provide evidence to support a seller’s asking price or a buyer’s offer price.
- Help both parties avoid overpaying or underselling the property.
- Help identify any potential issues with the property that may affect its value.
- Provide valuable information about comparable properties in the area, which can be helpful in determining the market demand for the property.
- Give both parties a better understanding of the local real estate market and how it may impact the value of the property.
- Negotiate the seller’s asking price or a buyer’s offer price, as it provides a professional and unbiased opinion on the value of the property.
What are the Key Components of a Market Appraisal?
The Estimated Fair Market Value
In a property appraisal, the value of a home is determined by a professional appraiser after carefully evaluating the home’s features and examining recent sales in the surrounding market. The estimated fair market value of a house takes into account various factors, including its size and location.
For instance, a four-bedroom house in Kingston may have a higher asking price than a similar property in Braddon or Belconnen. Additionally, a three-bedroom, two-bathroom house located in Charnwood, Higgins, Calwell or Banks may be more affordable than a similar property located in Canberra’s CBD.
The Actual Market Value
A professional appraiser provides a detailed explanation of the methodology used to determine the final value of the property. This may include market data analysis, the sales comparison strategy and the cost and income approaches, which consider comparable sales and potential rental income in the area.
When calculating fair market value for a residential property, you need to consider three things:
- The current market value of your home
- The location / type of neighbourhood and the condition of your property
- Any improvements that have been made on your home
Property appraisal is a serious business. It involves evaluating a property’s condition, location, square footage, recommended occupancy, floor plan, living area, number of bedrooms, number of bathrooms, design and quality of construction, heating and cooling systems, landscaping, type of ownership and so forth.
If you’re considering selling your house for more than the original purchase price (or if you’re wondering how much someone else should pay), consider hiring a professional appraiser, who can help you determine what’s going on with your home, and how much it’s worth.
A professional appraiser will include several of, if not all, the details mentioned above when creating their appraisal report for your property.
Your Local Property Market’s Trend
It’s important to stay up to date on local and national market trends in order to provide an accurate home valuation. Data from open homes, auctions, and sales of similar homes in the area is used to determine current market values and further information is gathered on comparable properties, public records and local market analysis.
Staying up to date on the current market trends and happenings will help you understand how your property fits within the broader market.
Any easements or encroachments on your property could affect the market value of your property and should be included in your report, if they are relevant. If there are easements on your property that restrict potential buyers’ access to their intended use, this should be reflected in your appraisal.
The following features will affect a home’s value:
- The floor plan (including size)
- The location and neighbourhood (including local crime statistics)
- Any structural damage (such as water damage or foundation issues)
- and our personal favourite, THE STORY.
Frequently Asked Questions:
How Can I Prepare My Property for Sale?
Presenting your property at a high standard will go a long way to achieving a premium price. Our agents can offer direct advice on where to spend your time and money, based on your property and price expectations.
Beyond tending to general maintenance, inside and out, there are a range of services available to achieve professional presentation.
Jonny Warren Properties can refer suppliers to assist with professional painting and cleaning, garden maintenance and landscaping, property staging, and other general trades to ensure your property presents well.
When is the Right Time to Sell in Canberra?
The sale of a property is often triggered by major events, such as a growing family, a new job, divorce, death, or debt, which tends to dictate the timing of a sale.
The best time to list your property on the market in Canberra is during the spring and summer seasons, as previous sale history suggests this is the Capital’s strongest selling time.
However, depending on the market conditions, and buyer demand, we have also experienced strong results in the colder months, when there tends to be less competition amongst buyers.
Our advice is dependent on your property and your situation. We highly encourage you to speak to one of our experts, when you first consider selling, so we can help guide you in the right direction.
How Often Will I Hear From my Agent?
Jonny Warren and the team understand that clear and regular communication helps to alleviate any anxiety and questions that can arise when selling your home.
From the beginning, your dedicated agent will establish a timeline with touch points and best methods of communication. Regular reporting is factored into each campaign, so you are kept informed at every stage of the selling process all the way to settlement.
Can You Keep My Listing Private?
Sellers who wish to keep the sale of their assets private may choose to pursue a sale ‘off market’.
Jonny Warren and the team have a strong database of prospective buyers who are kept in the loop with particular property requirements, so a buyer may be found without the need to publicly advertise or conduct public open homes.
Collaboration between our sales agents can also help to secure a suitable offer and if requested, the listings can be shared solely on the Jonny Warren Properties exclusive private portal and social accounts.
Who is Jonny Warren Properties?
Jonny Warren Properties are proud to be a multi-award-winning agency in Canberra and recognised as one of the top 4 property marketers in Australia. Our powerful brand presence and innovative marketing strategies set the benchmark in the property sector.
We are best known for our unique marketing tactics and production, namely our memorable property videos, which are recognized both locally and nationally.
Our marketing strategies are implemented across our digital media, database network, exclusive portal and social media channels, which have a strong following worldwide.
We also have a great relationship with the local media, which help to further boost our brand presence and property listings across the Capital and Australia as a whole.
Are you looking to get your property appraised in Canberra? Contact us today and let us tell YOUR story!