As well as a selling price, did you know your property can have different values?

The value of your property depends on who or what organisation is assessing it, and for what purpose. Plus, the value can vary based on market conditions – what a property sold for 10 years ago is a very different price to what it can fetch now!

Here we take a look at some different ways the value of your property can be viewed.

1. Market value: This is the estimated price that a property would sell for on the open market. Most homeowners have some idea of what their property’s potential market value is by looking at the property websites and look at the price of similar properties are listed for in the area.
2. Appraised value: This value is determined by a registered real estate agent. A good agent who knows the area will always give you an honest appraisal going on what the current market is dictating. As well as the size and condition of your property, the agent will also look at other features such as the suburb, and the proximity to schools and amenities.

The agent’s appraisal is a guide to how much your property may get, and it will usually give you a range of how much it expects to sell for.

3. Financial provider valuation: A formal assessment of a property’s worth, often conducted by a professional valuer. the financial provider will need to give a valuation for internal purposes to determine how much it is prepared to lend you. This valuation is often lower than a property agent’s valuation, sometimes as much as 20%.

This is because the lender will want to recoup its money should something go wrong with your repayments – and very often, they’ll want to do it quickly. The lender will also factor in the additional expenses that come with selling the property such as real estate commissions, legal fees and other associated fees. This all adds to the lower valuation as ultimately it doesn’t want to be out of pocket should something go wrong. It is often used by a lender for mortgage purposes.

4. Council rates valuation: Local councils also assess the value of a property for taxation purposes. Depending on the local council, it may be based on land values rather than the value of the physical property.
5. Replacement cost: Usually used for insurance purposes, this is the estimated cost to replace the property with a similar one, taking into account current construction costs and materials. It may also consider depreciation too.
6. Investment value: Rather than looking at a property as a potential home, an investor views a property with specific investment objectives in mind; they will consider rental returns, long-term capital gain or, depending on the state of the property, may consider renovating and flipping.
7. Sale price: Ultimately, the money you get in your pocket for your property is what someone else is willing to pay for it at the time. Some properties go for far more than first appraised because properties are in short supply in a desired suburb. If there are enthusiastic bidders at auctions, again, your property may surpass appraisal expectations.

If you would just like to know what your house could get in today’s market, use our free online appraisal tool by Corelogic.

If you’re thinking of selling your property, or even just want an obligation free appraisal, come and talk to us. We are one of Newcastle’s longest established real estate offices and our innovative team is constantly achieving great results for our clients.

Having been in the business for nearly 50 years, we know what the current trends are and can also give you some hints and tips which may make the property more attractive to potential buyers.

Drop into the Cardiff office or give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au – we’d love to hear from you.

Don’t forget to check out our Facebook page more information about selling your property or what to look for when buying a property.