What is my House Worth? We know that all homeowners want to know what their home is worth, especially in a market as hot as Brisbane’s can be. So lets look at what goes into pricing a home?
1. We Look at Historical Sales
You know what they say…the best predictor of the future is the past. When pricing a home, real estate agents will look at recent sales on your street and in your neighbourhood. While we used to look at sales 12 or 24 months back, with a real estate market that’s as active as ours on Brisbane’s northside we generally look at sales in the past 6 months.
2. We Check out the Competition
If you’re thinking of putting your house on the market this week, then we need to know what potential Buyers are going to be seeing at the same time as they look at yours. When the Madeleine Hicks Real Estate team list a house or apartment, we like to physically go see everything a potential Buyer will see – and recommend a price accordingly.
3. We Make Adjustments
When it comes to houses, no two are alike. Finished decks and second bathrooms add value, corner lots and next-to-no storage detract; houses are worth more than units or townhouses; the house backing on to the railway track is worth less than the one backing onto parkland. Experienced real estate agents know what value people have historically put on certain features and can adjust your price accordingly.
4. The Best Comparable
The best comparable home to yours will always be the one that is the most similar to yours in condition and size, is most closely located to yours and has sold the most recently.
5. Data only goes so far – Experience counts
It’s great to see pics and info about recent sales and current competition, but the data can be deceiving (I am sure you have seen photos that don’t look anything like real life). If you’re working with a Real Estate agent who knows your neighbourhood, they’ll know what those houses or units REALLY look like and how yours compares. The team at Madeleine Hicks Real Estate have been inside most houses in McDowall and Everton Park over the past 15 years. Now that is experience that counts.
6. The Economic Reality
Supply and demand drive prices – when there are too many buyers chasing too few houses, prices go up. Prices are further affected by prevailing interest rates and the overall state of the economy. Just ask anyone trying to sell in 2009 – it doesn’t matter how great your granite counter tops and hardwood floors look if people in your suburbs are worried about their job and they are concerned about how much they owe the bank, then they are just not looking to buy.
7. The Demographic Wildcard
Who’s likely to buy your house? Will it appeal to a large number of Buyers or only a narrow target? How many Buyers who are out there right now want what you have to offer? Our Brisbane northside area has a great demand from both upgraders as well as downsizers.
7. The Neighbourhood
Trendy neighbourhoods come and go…is your house in a HOT neighbourhood? Is it growing or is it already mature? What new shops, services and transportation options are coming in? Has something negative happened (violence, poor school ratings) that will affect value? Fortunately we are located in a highly desirable part of Brisbane.
8. The Value of Your Home is a Moving Target
What your house or apartment is worth today is not necessarily what it is worth tomorrow, or next week or next year. As the factors that affect price change, so does the price you’ll get for your home.
At the end of the day, your home is worth what someone is willing to pay for it. But a lot more goes into pricing a home and an experienced Brisbane Real Estate Agent can make sure that you sell for the maximum price.