There is an art and science to estimating a property’s current market value. While you can use online tools to give you a guide, they are far from accurate and offer a guesstimate at best. That’s why it is critical to seek a professional marketplace appraisal from a real estate agent, especially if you are aiming to sell.
Your property’s market appraisal is one of the most important factors to establish before it is launched on the open market for sale. That’s because it is the most crucial factor if you want to achieve a relatively fast and successful sale.
So how is market value established? Let’s use the scenario of a house on land to explain this. In this scenario, both the land value and the building value contribute to the overall value. Of the two, land value is the easiest to estimate because it is based on straightforward factors like block size and comparable land values in the area.
When it comes to estimating the value of the house itself, the features, including quality and size, need to be considered. This can vary dramatically from one house to the next within a suburb, or even within the same street. It also depends on what WA buyers value most and this can change over time.
Below is a general guide that explains contemporary attitudes to WA homes and how they contribute to the property’s estimated market value.
1. No. of bedrooms
Over the last 50 years, the average number of bedrooms in a typical home in WA has doubled from 2 to 4. This is despite the average number of people in a household reducing over that period. Regardless of our shrinking households, the desire for more bedrooms and a larger home in general remains strong. Therefore 4-bedroom houses and 3-bedroom apartments are generally valued more highly by the market than homes with less bedrooms. Even for smaller households, buyers value the versatility of being able to use a bedroom as a home office/study or guest room.
2. No. of bathrooms & toilets
The desire for 4 bedrooms in a house is closely followed by a desire for more than 1 bathroom and toilet. On the whole, today’s buyers greatly value an ensuite. But if the property only has one bathroom, a second toilet will generate more buyer interest than if there is only one toilet in the home, for obvious reasons.
3. Storage
The value of storage on a property’s value is often underestimated. While we may have smaller households, generally speaking, we are accumulating more possessions. Therefore, a property with abundant storage is valued by the market. Even a spare bedroom may be considered storage space.
4. Home theatre
In the 70s and 80s, a games or rumpus room was all the rage. Today, the same space may be called a theatre room or home theatre. If you have a second living area that can be closed off and darkened, buyers will see this as a positive, imagining their flat screen TV on the wall, surround sound installed and comfy lounges in place for movie nights with the family or friends.
5. The kitchen
The popularity of cooking shows on TV has sparked a passion for cooking at home. A functional, spacious kitchen with quality joinery and appliances and ample bench space are an increasing priority for today’s home buyers.
6. Alfresco area
Our warm climate makes a functional and attractive outdoor entertaining area highly desired. Buyers value outdoor spaces that are readily accessible from the main living zone and kitchen for seamless entertaining and a natural extension to their living space.
7. Secure parking
We are a state that relies heavily on our cars. Therefore it will come as no surprise to learn that Western Australians love a house with a double garage in particular. It’s not a deal breaker though, as garaging is generally considered secondary to living areas in terms of importance.
Get in touch if you would like an accurate market estimate of the current value of your property. We know what local buyers want and factor that into our appraisals.