Not all properties are valued equally. Whether you own or are in the process of buying a property, it’s vital to keep yourself up-to-date with its value to avoid being shortchanged.
As you know, the property market is continually evolving. As such, ensuring you have the latest information about a property’s value is crucial. Understanding the up-to-date valuation of a property will affect your buying and selling decisions, financing opportunities, and investment strategies.
This can position you advantageously, whether you’re a buyer, seller, investor, or developer.
However, you shouldn’t rely on outdated information or unverified sources. Instead, use current, reliable data to make realistic evaluations.
But how can you do that?
This article will guide you through the process. We share the essential steps for accurately determining a property’s value so you can make informed decisions.
The Role of Market Trends in Property Valuation
Property values don’t exist in a vacuum. They’re in a constant state of flux due to various market influences.
One of which is the health of the local economy. Factors such as employment rates, inflation, and interest rates can significantly impact property demand and values. For example, in a thriving economy where unemployment is low, property values often rise because more people have the means to purchase.
Local supply-demand factors also play a pivotal role in property values. When there’s a high demand for properties but there’s a limited supply, prices tend to rise. Conversely, an oversupply with few buyers can decrease property values. Specific developments, such as the establishment of new schools, transportation hubs, or businesses, can also shift the demand for property in a given area.
That said, historical property values can provide you with insight into the market’s past behaviours. For instance, properties in areas with consistent growth over the years might be viewed as more stable investments. Meanwhile, regions with volatile property values are riskier.
Archistar’s data layers, powered by Australian property analytics from governments and companies such asDomain and CoreLogic, offers a robust platform or you to deeply analyse these market trends.
It has consolidated data from over 25,000 sources, allowing property developers and investors to get real-time insights into important data. Think market dynamics, sold properties, and median prices.
5 Steps to Obtain Accurate Property Value
Knowing a property’s true value requires careful research and understanding. It’s essential to be thorough in this process, as accurate valuation helps make informed decisions.
With that, here are the five steps to follow for you to know the accurate property value of a given address.
Step #1. Begin with a Broad Market Overview
Before diving deep into individual property values, look at the broader economic landscape first.
Familiarise yourself with national economic indicators like GDP growth or unemployment rates. Take note as well of the prevailing mortgage rates, as they can influence buyer demand. These indicators offer insights into the overall health of the property market.
Also, look into nationwide events, like economic downturns or fiscal policies. These can have ripple effects on property values, even if local conditions seem stable. Recognising such overarching trends will give you a foundational understanding of the property market.
Looking into macroeconomic factors can help you anticipate potential shifts in the property market. As a result, you can make better property investing decisions.
Step #2. Dive Deep into Local Market Trends
After understanding the national landscape, zero in on specific local property trends.
Each region or city has certain characteristics that impact property values in the area. And they are often influenced by the local job market, planned infrastructure projects, the quality of school districts, and the area’s general desirability.
For a clearer picture of a property’s valuation, also look at the property prices in your target area. Check how long properties remained listed, on average, before getting sold and for how much.
Such localized insights can help you predict future demand and supply trends. This way, you can ensure your valuation is grounded in present-day realities.
Step #3. Use online valuation tools for specific address valuation
Technology has made it possible to have property valuation tools within reach. Various platforms have developed ways to quickly generate initial estimates of a property’s value.
These platforms are powered by vast databases. They collect data from multiple sources to provide a comprehensive overview of property values.
However, their algorithms are based on recent sales, current listings, and other factors. This means they can give you a good starting point, but they might not account for all the nuances involved in a property. For instance, certain unique attributes or recent changes to a specific property may not be considered.
So, just use their estimates as a starting point. Do further research and validation for the utmost accuracy of a property’s value.
Step #4. Consult professionals who use trusted data sources
Yes, online tools are handy. But there’s still significant value in human expertise.
Property professionals, like agents and certified appraisers, have plenty of hands-on experience in the field. Their on-the-ground perspective can add a layer of depth to the valuation, ensuring you get a comprehensive assessment.
These professionals can offer a nuanced view of a property’s value. And they’ll take into account its condition, recent upgrades, and features that online valuation tools can’t access.
Step #5. Regularly update your valuation data
Market conditions continuously shift due to factors like interest rate changes, economic developments, or regional demand and supply changes. As such, it’s essential to ensure that your property valuations remain up-to-date.
By periodically revisiting and updating your data, you position yourself to make decisions that are consistently in line with the current market state.
Make Informed Property Investment Decisions with Trusted Data
The wisest property decisions thrive on accurate data, not guesswork. That’s why as a property developer or investor, you must base your choices on solid information.
Archistar will help you do just that.
By partnering with industry leaders like Domain and CoreLogic, Archistar can provide you with vital insights essential for winning in the property market. The platform can help you stay updated with market trends, valuations, and property specifics as it gets data only from reliable sources. This will ensure you’re always a step ahead in the ever-evolving real estate landscape.
Over time, it can help you easily make smart, data-driven property decisions—to the point that it’s second nature to you.
If you want to see how the platform can help you get accurate data to determine any property’s value, try out Archistar for free today. Check out how it can help you maximise opportunities and minimise risks in the property market.
