What is my house worth?

The average home in Australia has risen in value by 11 per cent over the past year, according the Australian Bureau of Statistics.

Though changes in the real estate prices are out of your control, there’s every chance that you might be in for a nice surprise if you choose to investigate.

Determining the value of your bricks and mortar is the most important step if you’re thinking of selling your home. Why? Because if it’s overpriced then nobody will look at it, and if it’s under priced then you could potentially be short changing yourself thousands of dollars.

Here’s a guide to help you work out what your most valuable asset is really worth.

1. Look for relative comparisons in your area
This is where you need to get out there and take a look around. If there are houses up for sale in your suburb, go to the inspection and see how your property compares. If you’re dealing with an agent you should be able to find out exactly how much others are selling for.

2. Select three similar properties
By now you should have a basic idea of which properties are in the same range as yours. The next step is to select three that are similar in terms of age, size, features, style and location. You also need to consider factors like proximity to schools, shops, parks and public transport.

3. Calculate the average price of the three properties
Determining the value of any property isn’t an exact science, but you should have a ballpark figure at the completion of this step. The property market can fluctuate rapidly so it’s important that all three properties have been sold no more than six months prior.

4. Adjust the figure in accordance with your property
Now that you’ve got a rough figure that relates to other houses in your area, its time to start adapting those numbers to suit your specific property. If you’ve got room for an extra car, a bigger yard or maybe a corner block, increase your price, and vice versa.

Whether you’re deciding whether to sell, how to price your property, or are just curious how much your house is worth, determining the value of your property isn’t difficult. Even if don’t want to hire an agent, you should still be able to get a good idea of how much your home is worth by doing a bit of research, and by being aware of the market in your area.