Your home is your castle, and in most cases, it is your most valuable asset. With property prices constantly changing it is vital to keep updated on what your property is worth in the current market. Doing regular check-ins on your property to ascertain its value is important, as knowing its value is critical to your wealth well-being.
Despite higher interest rates, home buyers are still out in force in the marketplace with a strong fear that they may miss out if they don’t purchase now. A shortage in rental supply is seeing some renters now looking to buy their own property. Plus, a strong rebound in net overseas migration has lifted housing demand.
According to realestate.com.au’s latest Residential Audience Plus Survey, conducted in July, 44% of potential sellers now believe it is an opportune time to sell, compared to 37% in 2023.
A lucky group of homeowners in 101 suburbs across Australia have seen their property values surge, with house prices rising more than 1 million in just five years!
So now might be a great opportunity to get an update on what your property is worth in the current marketplace.
The easiest and most effective way to find out what your property is worth is to have an obligation free appraisal by a reputable real estate agent. With their expertise and knowledge of the current property market, plus useful market comparisons, your Smile Elite local agent can provide you with valuable guidance so you are fully informed.
Key Reasons for a Property Appraisal
1. Track Market Changes and Economic Conditions – Regular appraisals help you stay informed about real estate market trends, including fluctuations in property prices in your area. Plus, how economic changes, such as interest rate adjustments or local economic developments affect your home’s value, providing valuable insight into the current market trends.
2. Strategic Financial Planning - Knowing the current value of your home allows for a clearer understanding of your net worth and assists in financial planning. Appraisal data can be used to make informed decisions about refinancing, renovations, or other financial commitments tied to home equity.
3. Pricing Correctly - If you are considering selling, having an up-to-date appraisal on your property ensures you price it correctly. Overpricing can turn potential buyers away, while underpricing may lead to missed profits.
4. Renovation and Improvements – An appraisal can show you how any recent improvements to your home (such as kitchen or bathroom upgrades) have impacted your property’s value. Giving you insight into the return on investment.
5. Property Tax - Regular appraisals can ensure you are not overpaying property taxes.
6. Mortgage Lending/Refinancing opportunities - If you are planning to take out a home equity loan or refinance, knowing your property’s current value beforehand helps set realistic expectations. Lenders will require an up-to-date appraisal to determine how much you can borrow, loan-to-value ratio, and associated risks.
7. Accurate Insurance Coverage - Regular appraisals ensure that your home insurance policy aligns with the actual value of your home, offering adequate protection. This ensures you are covered for the full replacement cost.
8. Estate Planning and Probate - The valuation of a property provides an accurate value of the home, necessary for estate planning. This is important for wills, trusts, determining inheritance tax, and dividing assets among heirs, ensuring a fair distribution. Similarly, in cases of divorce, an updated appraisal can ensure a fair division of assets.
9. Investment Performance - Regular appraisals can help you track your investment property’s performance over time by providing insights into the property’s appreciation, rental income potential, and overall market trends to aid informed investment decisions.
10. Peace of Mind - Lastly, having regular appraisals lets you know exactly where you stand with one of your biggest financial assets, empowering you to make confident, informed decisions.
Staying up-to-date about your home’s worth through regular property appraisals is essential for homeowners. This will help you maintain financial health and assist with future planning and strategic asset management to ensure your wealth well-being.
Acknowledgements: realestate.com.au, Residential Audience Plus Survey, Property Edge.