What's my property worth?

When bringing your property to market, one of the most important early decisions is setting the right price and developing a sound pricing strategy.

The last thing you want is for your property to sit on the market without generating the interest it deserves. Generally, the longer a property remains unsold, the harder it can become to sell, as buyers may begin to question why it has not sold. In many cases, properties that take too long to sell eventually do so at a lower price.

Often, the key factor holding back a sale is the asking price. Of course, every owner wants the best possible result, but attracting buyers starts with meeting the market at the right level. When a property is priced in line with market expectations, it is far more likely to generate genuine interest, create competition, and put you in a stronger position to negotiate a premium price.

ONLINE TOOLS
There are now more and more publicly accessible websites offering estimated property values. Often, the ranges they provide are so broad that they offer little real guidance.

In our experience, the values suggested by these sites can differ significantly from those reached through proven appraisal methods. This is largely because they are usually based on computer-generated modelling rather than a detailed assessment of the individual property.

CAPITAL VALUE (CV)
Many property owners look to the CV when considering what their property may be worth. However, there are several reasons why a CV, also referred to as a Rating Value or Rateable Value, may not be a reliable guide to current market value.

• CVs are generally updated every three years and are typically generated using a computer model, without a physical inspection of the property. As a result, there is a good chance the market will have moved significantly since the last CV was set.

• If your property differs significantly from others in your area, whether by size, views, age, condition, or usable land area, automated valuation models such as those used to generate CVs may not provide a meaningful estimate of value.

• Your property may have changed significantly since the last CV was set, for example through an extension, additional floor area, a new shed, or the subdivision of part of the land. Even if the council is aware of those changes, such as through a building consent, the CV may not be updated until the next full revaluation.

• More often than you might expect, the information held online about a property and used to generate CVs is incorrect or incomplete. This can include errors in floor area, missing improvements, or incorrect details such as the number of bedrooms or bathrooms.

An experienced real estate professional will draw on their knowledge of the market to assess properties that have recently sold, as well as those currently for sale, and compare them with your property. They will consider any significant points of difference, such as land size, contour, house size, construction, age, features, condition, location in relation to amenities and main routes, views, and current market conditions, in order to arrive at an appraised value.

An appraisal is the price a real estate professional believes you may realistically achieve for your property if it were placed on the market at the time of the appraisal. It is not the same as a recommended listing price if you choose to market your property with an asking price.

A word of caution: one practice sometimes seen in the market is known as “buying the listing”. This is where a salesperson overstates the price they believe your property can achieve in order to secure the listing. After a relatively short period, they may then advise that the market is not supporting that price and recommend a significant reduction.