What is your home worth in 2022?
After the significant price jumps of homes around Australia in 2021 (the average property value increased by 22%), you are probably wondering what your home is worth as we enter 2022. Whether you’re planning to sell or looking to refinance, it’s always helpful to have an idea of your property’s value.
Real estate is an interesting industry because of the way the final selling price comes down to an agreement between buyer and seller. However, as a seller, you of course don’t want to sell your home for less than market value.
Here are some steps to help you understand what your home is worth in 2022 and what it could potentially sell for.
- Check out local prices: A glance at the average house prices for your suburb via a portal like Domain or realestate.com.au will also help you get an idea of what your home is worth and how the value has changed since your last appraisal.
- Research recent sales in your area: The next step to figure out what your home may sell for is to research recent sales in your area. Trying out a tool like onthehouse.com.au will give you an idea of where local prices stand. However, remember to compare apples with apples. The sale price of a 5 bedroom, 3 bathroom home will not dictate what your 2 bed, 1 bath will sell for and vice versa. Look for sales of houses of comparable size and condition in your closest postcodes.
- Have a valuation: A valuation is carried out by a bank or other official financial institution. Valuations will tell you what lenders will believe your home could sell for in an emergency (for example, if the bank took repossession and needed to sell because you didn’t pay your mortgage). More often than not, a valuation will be on the lower side of the actual sale potential.
- Have an appraisal: An appraisal is carried out by a real estate agent rather than a lender. It will be based on what the home will sell for with a number of factors taken into account, including the size of the home and garden, the layout, the location, recent outcomes of similar property sales and the number of interested buyers in the market right now.
Some real estate agents will share better and more accurate appraisals than others. If you believe an appraisal is too good to be true, make sure to ask why. A quality agent will set realistic expectations based on very up to date data.
So what is your home worth?
After doing some research, keeping an eye on what other homes are selling for and speaking with an experienced real estate agent, you should have an idea of the maximum and minimum your home could sell for.
If you are ready to sell, the next step is to ensure you can hit that maximum price. An experienced agent will show you the most cost-effective ways to improve the sales result, either by making small but impactful upgrades or by marketing the home so it appeals to highly motivated buyers.
As mentioned, the final value will come down to an agreement between you and your buyer. However, with the right help, it will be an amount you are thrilled with.
