In this day and age it's easy to find information about residential property values. Websites like realestate.com.au, domain.com.au, corelogic.com.au and many others offer either direct property value estimates for your property or the ability for a property owner to make relevant comparisons to the most recent sales in their area.
But there is one problem, these algorithms, these scientific formulas, cannot meet the buyers, the human beings, who make the market. It is the human element, the "X-Factor", that inevitably determines the real price of anything, especially something as emotionally laden as a home, a place where humans live. For many properties the difference between mathematical formulas and indefinable human perception is what can create a vacuum of value that may alter an owners decision of whether to sell, renovate, rent or rebuild.
When a property owner engages a Professional Real Estate Agent to provide a current appraisal of value they are getting much more than an algorithm compiling raw data. They are getting a comprehensive combination of computerised statistical information combined with thousands of face to face interactions with real buyers whose blunt comments and criticisms are processed and stored in the deep recesses of an agent's property mind. The combination of the two, if used correctly, can offer incredibly accurate insights into the possible value of a property at a given point in time.
Here are 5 sources of information that you won't get from a computer program:
- Local Comparison - How your property really compares to the Sold Property List as seen on any of the websites. Many of the agents have seen inside the property you think compares to yours.
- Local Competition - Professional Agents don't just use past sales data to establish value. They know what is on the market that really compares to your property,
- Local Buyers - Active Agents are dealing with a number of relevant buyers. The feedback these buyer have expressed regarding similar properties can offer clues to what they would pay for your property.
- Local Offers - Agents are often aware of the specific offers that have been made on various relative properties. These offers may have been rejected or have fallen short of the winning offer but this information is often a key to establishing the depth of interest in a specific property type.
- Needed Improvements - Taking into consideration the above four points, a good Agent will be able to provide qualified insights into what you should do to improve your property asset and how much you can spend before overcapitalising.
When you consider that most Professional Agents spend 60 hours per week working in your local area, it is not hard to understand how they can combine the logic of statistics with observations of buyer behaviour to establish an accurate appraisal of value for your property.
Regardless of whether you are thinking of selling or not, a Professional Agent will embrace the opportunity to meet a local property owner, offer professional advice and recommend qualified trades to assist in improving your property value. A good Agent knows their business is built on Local relationships. The more Local advocates an Agent has who will recommend their services, the more successful their career will become.