Setting a price for your home can be difficult, because you have an emotional attachment to it, but having unrealistic expectations can lead to disappointment. If you’re selling through a real estate agent, they will help you set a price expectation. However, you should make your own assessment, to make sure your price is neither too low nor too high. Here are a number of objective sources of information you can use.
Rateable value (RV)
The rateable value (RV) used to be called Government Valuation or GV. It’s set by your local authority for the purpose of assessing rates. It’s a useful guide to your property’s value, but remember it’s only a guide. It’s based on general property values in your area rather than a detailed review of your property, it doesn’t include chattels such as carpets or appliances, and it may be out of date – some RVs are set every three years only. Depending on the area and the property, your home could sell for significantly more (and occasionally significantly less) than the RV. Check out your local council websites, as in most cases you can get an instant RV online for free.
Other recent sales in the area
If you can, find out what other homes in your area have sold for recently. Your real estate agent should be able to provide this information. You can also buy it online (plus a range of other reports that may help you set a price) from QV.
Other similar properties on the market
Check out similar houses which are on the market now. This will give you a feel for what you are competing with. Talking to the agents who are selling them as well as your own agent may also give you a feeling for what the market is like at the moment.
A valuation report
You can get a valuation report from a registered valuer. This will give you their professional assessment of your home’s market value, which should be a more up to date reflection than your RV. The valuer will do a detailed inspection of your home as well as a review of similar recent sales in your area. Their valuation will include chattels.
To find a valuer, ask for recommendations from friends or family. Alternatively, your bank, lawyer or real estate agent work with valuers all the time and may be able to assist. You can also use the yellow pages and search under valuers. A full valuation report should cost around $450-$600.
Know your bottom line
As well as getting objective information, it’s important to know your bottom line i.e. exactly how much money you need. Remember to subtract the commission you will need to pay to your agent, plus GST. Any marketing or advertising costs and other expenses you will need to pay from the selling price.
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