If you’re thinking about selling your property, you’ve likely come across different prices being quoted. You might be wondering: what is your property worth right now, and why is it different from the market value?

For many Australians, the time to sell has finally arrived. However, recent data from CoreLogic’s national Home Value Index (HVI) shows a slight increase of 0.30% in October, but a small decrease of -0.1% in Sydney’s home prices. This marks the first decline since January 2023.

This slower growth in home prices is partly due to more property owners listing their homes for sale, especially in Sydney, where listings increased by 13.2% compared to a five-year average, and in Melbourne, which saw a 13.0% increase. With more homes available, sales dropped by -7.5% over the past three months, reflecting lower sales compared to last year (CoreLogic Hedonic Home Value Index, 2024).

What does this mean for you if you’re looking to sell?

You may need to wait a little longer to close the deal. Or better yet, to ensure your property stands out, make sure you’re setting the right price from the start. But before you can do that, it’s important to understand your property’s worth and how it compares to the market value.

What is My Property Worth?

Have you ever wondered why your perception of your property’s worth seems to differ when you seek other people’s opinions, moreso when you consult professional valuers? Here’s why:

Emotional value and investment

For many property owners, property worth reflects their personal attachment and emotional investment. Our perception of value is often shaped by our memories and experiences, and it’s tough to separate the emotional value from the financial one. The care you’ve poured into your property over the years can make it difficult to assess its worth objectively.

Property cost and upgrades made

Another important thing owners consider when valuing their property is the cost of land and building their home, plus any renovations or upgrades they’ve made. While these factors can play a huge role in determining the value of your property, these alone don’t give an accurate reflection of your property’s true worth.

But, even if your perception of your property worth differs from its market value, considering such factors above can help you understand how you’ll make future upgrades to either preserve or enhance its value in line with your personal vision.

Now, let’s check out what market value is and how it affects your property.

What is Market Value?

When it comes to selling your home, knowing the ‘market value’ or the price your property would likely sell for in today’s market, is key. Unlike your personal perception about your property worth, it’s not based on the emotional or personal value you place on your home; but it reflects what buyers are willing to pay. This price is shaped by factors like demand, location, and current market trends.

Why does market value matter?

Understanding your property’s market value is essential because it influences how much buyers are willing to pay. For instance, in a high-demand market with fewer homes for sale, your property might attract higher offers as buyers compete for limited options. While, if there are many similar properties on the market, buyers get to have more choices, so you may need to adjust your price to stay competitive.

According to recent housing trends from CoreLogic (2024), demand often shifts with the seasons and changes in the economy. By knowing your property’s market value, you can set a realistic price that attracts serious buyers, helping you avoid a long, drawn-out listing process.

But what exactly shapes this value? Beyond just the features of your home, a range of factors come into play, each affecting what buyers are likely to pay.

What influences market value?

Market value goes beyond just the layout and features of your home.

Several factors contribute to it, influencing what buyers are willing to pay for:

1. Buyer Demand

Some buyers get attracted to specific property features like a spacious yard, nearby amenities, or scenic views. These features can increase the demand to increase and push house prices to go higher.

2. Market Conditions

When the economy is doing well, incomes are higher, and property buyers have more purchasing power, more people can afford to buy a home. These conditions can boost the demand and cause the home prices to go up.

3. Location

Location plays a big role in market value. Properties in prime areas or those in sought-after suburbs with strong growth potential tend to have higher market values.

4. Unique Features

A property’s unique features—like a big yard, modern finishes, or eco-friendly upgrades, make a property more appealing to a wide range of buyers. These features can also increase the property’s value.

5. Sales Comparison

Sales comparison involves looking at recent sales of similar properties in your area to gauge their selling prices. This gives you a benchmark for setting a competitive price that aligns with current market trends.

Understanding Your Property’s Real Value

If you’re planning to sell, one of your first questions is likely, “What is my property really worth?” While it’s easy to become emotionally attached to your home, it’s important to understand its actual market value to make informed decisions about pricing and selling.

That’s where a professional property valuer like IPV comes in. A professional valuation provides an objective, market-based assessment that takes the guesswork out of pricing your property. This is especially important if you want to ensure your property is priced right for a successful sale.

What does a professional valuer do?

A professional valuer offers an unbiased assessment of your property, considering key factors like location, local market, and condition, that influence its value in the current market. With over 100 years of combined experience, a valuation expert like IPV can provide an accurate and reliable market value rather than a figure based on sentiment or guesswork.

Here’s what a professional valuer considers:

1. Location and Local Market Data
Location plays a huge role in determining your property’s worth. Valuers assess nearby amenities, public transport options, and school zones—all factors that add to property appeal. 

For instance, a 2019 case study about the Sydney’s Northwest Metro construction showed that the residential prices increased by 0.037% for every 1% reduction in the nearest metro station. This proves how being closer to important infrastructure can greatly influence a property’s market value.

2. Property Condition and Unique Features
Property valuers also assess the overall condition of your property.   They consider any unique features like renovated kitchens, energy-efficient systems, or additional living space, which can all increase the property’s value.

3. Comparable Sales in the Area
Valuers look at recent sales of similar properties in your area to create a benchmark. This approach, often called the “comparable sales method,” ensures that your property’s value is in line with current market conditions.

4. Economic Factors
Factors such as interest rates, inflation, and employment levels can affect one’s ability to buy a home. For example, when there’s low employment, buyer demand can decrease, which may lead to lower property prices.

Why a Professional Valuation Matters

Getting a professional, objective valuation from experts like IPV provides you with a clear, accurate picture of your property’s true market value. This helps you make informed decisions about listing prices, negotiating offers, and  sealing the deal. With a professional valuation, you’ll feel more confident and clear about selling your property.

Working with a professional valuer means you’re not just relying on hope or guesswork, but you’re setting yourself up for a successful sale by understanding your property’s real value in today’s market.

This helps ensure that you’re setting a fair and competitive listing price, which makes your property more attractive to buyers. 

Ready to know your property’s true worth?

Contact us today and let our expert valuers provide you with an accurate, unbiased assessment to help you set the right price.