Generally speaking, homes increase their value over time. However, one of the most interesting things about property is that the amount a home is worth can fluctuate over the short term.
The value of your home can change based on a number of factors so it is important to keep tabs on what it is worth now, not 12 months ago. This is especially the case if you are planning to sell your Mosman property in 2019.
If you’re wondering what your home could fetch at auction, here are some practical ways to establish a price, plus some pitfalls to be wary of when it comes to house values.
How much is your Mosman home worth?
In practical terms, your home is valued based on its size, location, features and the condition it is in.
A Mosman property worth $3 million and above is spacious, with a good number of bedrooms and bathrooms and off street parking. It should be easy to access and will have impressive views of the area, or at least a lovely outlook. A sunny (but not too sunny) orientation can help to increase the final sale price, as will a modern kitchen and features like air-conditioning.
Even if it ticks every buyers’ boxes, the value of your Mosman property is also impacted by the current market and level of demand. Fortunately, Mosman has not been affected by the recent downturn due to high demand so prices are holding very strong. The suburb even experienced an all-time record sale in 2018 so things are looking good if you are planning to sell this year.
Why you need to set realistic expectations
When you are looking to sell, the first thing to do is call a few different real estate agents. These professionals will take a look around your home and give you an idea of how much they believe it will sell for based on the factors mentioned above.
It can be tempting to go with the agent who quotes you with the highest price, as we all want top dollar for our property. Be very mindful, however, if this price sits tens of thousands above what other agents have quoted.
There are agents who will give you a high price in the hope of winning your business. The problem with this is it can end up being a waste of everyone’s time. This is because the final value of your property is not determined by your agent but by the buyer.
Consider this scenario:
A local buyer has spent months scouring the market. They know from countless open homes and discussions with real estate agents what properties are selling for and what features draw in the highest prices.
This buyer sees a property listed at $3 million, which is within their budget. However, when they attend the inspection they notice it does not have secure parking or a swimming pool. This is frustrating for them but they are keen to make a purchase so they put in an offer of $2.5 million.
However, the seller has that $3 million figure firmly in their mind, either because of bad advice or because they have failed to take heed of advice from a local property expert. They refuse to consider the offer in the hope that someone else will come along.
Six months later, this seller has fired their agent. They have spent a great deal of money and not achieved a sale, and unfortunately the only interested buyer has moved on.
How to accurately value your Mosman property
You can establish a ballpark idea of what your home is worth based on what your neighbours have sold for, or the figure an online estimator shares with you. However, you need the up to date advice of a professional to reach a more specific figure.
A good real estate agent will not agree to list a property if they don’t believe the seller’s expectations are realistic. They will give their valuation based on facts, research and the most recent sales in the area. The information they share will be backed up by evidence. Your agent should be able to confidently answer your questions about why they have arrived at the sum.
There are limits to the price a home will sell for, even in Mosman. It is better to go to market with a realistic strategy and be pleasantly surprised than to pray for a miracle. With a smart valuation and the right sales and marketing campaign, it will be the buyers who boost the value, by coming in with a high offer.