When we think about property, it needs to be with the appreciation of the wider market. The valuation of homes, units, and even commercial sites will shift and swell into cyclical ‘bubbles’ that will eventually pop for one reason or another.
Fortunately, some factors that impact a property’s value are within the seller’s control, while others are out of their hands. To help you get a better understanding of the factors that influence the value of recently sold properties in Balwyn, Melbourne, and wider Victoria, our specialists at Noel Jones have compiled everything you need to know below.
1. Comparable Properties in Surrounding Areas
Before you investigate the macro indicators of the broader market, if you want to understand the value of your property, it helps to start by reviewing what similar properties in your area have recently sold for. Doing this will offer insight into the potential market rate, balancing supply and demand. There’s no need to drive around door knocking – all of the information you need is readily available online, so it’s worth doing your research before you put your property on the market.
2. Location, Location, Location
That old real estate adage still holds true – location is everything. But it isn’t just about securing the ‘worst house on the best street’. Sure, if your property is located in a sought-after neighbourhood or close to desirable amenities, it will be worth more than a comparable property in a less desirable location. But you will also need to consider Melbourne’s metro locations against rural areas and outer suburbs like Balwyn.
3. Property Features
This is where you start to focus on the features and characteristics of your property that differentiate it from others on the market:
Size & Interior Space
Generally speaking, larger properties sell for more than smaller ones in the same area. It makes sense – larger block size, more materials required to build the structures themselves, and likely holding ample bathrooms, bedrooms, and entertainment spaces. Likewise, properties with more spacious and well-designed interiors will also fetch a higher price.
Age & Condition
Older properties can be more difficult to sell, as the need for renovation work may put potential buyers off. That said, if your property is well-maintained and in good condition, many buyers who appreciate more traditional architectural styles from years gone by may be prepared to spend more to obtain the property.
Upgrades & Extensions
If you’ve made any upgrades or additions to your property, such as an extension, an outdoor entertainment area, a swimming pool, or a new kitchen renovation, this will surely add to its value. Naturally, these improvements can make your property more attractive to potential buyers, as they will not have to introduce such features themselves, helping you achieve a higher sales price.
4. The Wider Real Estate Market
It’s also worth considering the state of the broader real estate market when determining the value of your property. As mentioned above, it all boils down to primary supply and demand economics. A ‘buyer’s market’ is when plenty of new properties are being built and released onto the market, with owners lowering the price to entice a greater pool of interested parties. This will flip to a ‘seller’s market’, however, when the amount of available properties shrinks, and the active buyers must raise their offers to compete with each other.
This is similar to what we have seen off the back of the COVID pandemic, where new properties were difficult to build in Australia, lowering the supply and creating record house price growth.
5. Interest Rates & Global Economic Indicators
Finally, interest rates and global economic indicators can also impact property values. Low interest rates make buying a property more affordable as the cost of borrowing money is reduced. As such, it can lead to increased demand and higher prices. Should interest rates rise, however, perhaps in efforts to combat rising inflation, this can make it harder to meet mortgage repayments and remove some potential buyers from the equation.
Receive Further Insight into Recently Sold Properties in Melbourne & Victoria with Noel Jones
All of these factors will influence the value of sold properties in Victoria. By taking them into account, you can get a better idea of how much your property is likely to sell for. For more information or help evaluating houses for sale in Croydon, Balwyn, Melbourne and wider Victoria, contact us Noel Jones today.