What to Know About Real Estate Valuation

You might think that property value is the same as the price, however, the price and value of a property are not always the same. There are many factors that affect a property’s value and sometimes listing prices do not show the real value of a property. 

There are houses that might be overpriced but there are also properties that are underpriced. If you do not know that value and price are different, you might easily fall into buying an overvalued property. Read this article to know more about real estate valuation and what it means for the buyer.

What is Real Estate Valuation

The value of a property isn’t the same as its price. For example, the actual value of a property is $300,000 but the seller would like to sell it for $350,000. For inexperienced buyers, this might not be an issue as they don’t have an idea of what the actual value is. On the other hand, an experienced buyer or investor can find a way to verify its value and eventually learn that it isn’t fair pricing. They can negotiate with the seller or he/she decides whether he/she will still proceed with the purchase given the current price. 

In some cases, buyers proceed with purchasing these properties due to various reasons. Some investors seal the deal because they see the property’s potential to increase its value.

How does a real estate property get its value? In the next part of this article, we’ll discuss the various factors that influence the property’s value.

house valuation

Factors that influence property value

1. Size

Knowing the value of a property relative to its size is simple. In the same area, a four-bedroom property should be more valuable than a one-bedroom property, and a 500 sqm lot should be more valuable than a 200 sqm lot. It makes sense that a smaller property should not be priced more expensively than properties that have more space.

2. Location

Things are different once you put the location into consideration. Generally, properties in cities like Sydney and Perth are more expensive than properties in outer suburbs. A small studio-unit in the city centre might be worth more than a three-bedroom house in the suburbs because of the demand in the area and because that area is more desirable to live in.

3. Condition

The condition of the house also plays a big factor in its value. However, this can also be a great opportunity for sellers to increase their property’s value in a short amount of time. Renovations, home maintenance, and improvement are the main ways on how to add value to the property. If you are a homebuyer, you must inspect the property for issues such as electrical problems, plumbing issues, roof damage, and more.

4. Supply and Demand

Real Estate value changes with the supply and demand in a specific area. In places where the is a lot of supply or houses that are up for sale but not enough buyers, the value goes down. However, in places where there is not enough property to meet the demand of buyers, the value goes up. Simply put, the property value goes up with demand. 

5. How the property can be used

Commercial properties are valued differently than residential properties. Laws and restriction is also a factor here as if a residential property cannot be turned into a commercial property, its value and desirability can decrease depending on a buyers’ intent.

why is real estate valuation important

Why is Real Estate Valuation Important

Valuation is important because each property is unique. Two houses in one street, even those that look identical, can be very different in terms of condition, interior, and presentation. With these factors and those that are previously mentioned, their value will differ accordingly.

As an investor, real estate valuation will also let you know how much you should reasonably pay for the property, how much you can borrow to purchase the property, how much you can sell the property, and in cases wherein income is the investment goal, it will let you know how much income the property can generate.

Since valuation is a crucial part of the property buying process, it is best to consult experts especially for those who are new to investing or home buying.

Consult the expert

When buying a property, it’s better to ask help from licensed valuers for a more accurate property valuation. In addition, your buyer’s agent can help negotiate with your seller for the right amount. They can both help with assessing if you are getting a house for a lesser amount than its actual value. 

Don’t be fooled by the price tag. You need to make sure that you’re paying out the right amount of money and that you’re getting your money’s worth. 

With the vast experience of the buyer’s agents of Buying Perth Real Estate, they are knowledgeable enough to provide you with the right information of the property you are planning to buy. Contact our experts at 08 6215 0200 or send an email to clive@buyingperthrealestate.com.

5 Tips For Upgrading To A Bigger Home

Your first home purchase might have been perfect for you and your partner. Its size is just right, it is easy to maintain, and fits your budget. But as your family grows bigger, you eventually realize that you need a bigger space. You slowly identify the things that you want and need in your home – a bigger kitchen, additional bedrooms, bigger yard, etc. Upgrading to a bigger home suddenly becomes an essential task that you won’t be able to ignore.

But before you go ahead and upgrade your home, these tips for upgrading to a bigger home can surely help make your upsizing journey easier:

1. Identify your objective.

Upsizing your home is nice but what exactly is your objective for buying a bigger home? It is most probably because you want more space but have you thought about why you want to have a bigger space? Pin down specific reasons why you want a bigger home. Having a criteria will make it easier for you to assess your options when actually looking for a new home.

Determining what you are looking for in a bigger home will keep you on track and ensure that you are making a correct purchase. Think about what you wish to change in your current home. Do you need more bedrooms for your growing family? Do you want a larger yard for the kids to play in or for hosting backyard dinner?

2. Assess your finances.

Once you’ve identified your reasons for upgrading to a bigger home, determine if you are financially-capable of covering its long-term costs. A bigger home doesn’t just mean higher purchase price. It also entails higher property taxes, higher utility fees, and requires more maintenance. A lot of space also means that you need to acquire more furniture.

Aside from a higher monthly mortgage rate, furnishing your big home, utility and maintenance expenses are the additional costs that are often overlooked when upgrading to a bigger home. Keep in mind that the purchase price isn’t the only thing that you need to consider when buying a bigger home, the monthly payment and all the associated costs are bigger liabilities.

3. Consider the resale value.

Are you thinking of purchasing a bigger home and making it your forever home? Think again. A big home might feel too much once the people in your home start to move out. Your children will eventually move to their own homes to build their own families. With this, you would probably consider downsizing and selling your big home in the future.

With your home upgrade, consider the possible resale value of your new home. Do your research about what home buyers want. You are not just buying for the sake of staying in a bigger home but you should also consider the possibility of reselling. Choose the type of home and its location wisely.

4. Decide if you are willing to move to a different neighborhood. 

Bigger houses are usually located in farther locations, those that are away from the city. Most properties in the city are perfect as starter homes as they are smaller, close to the city, and are accessible through public transportations. Although bigger homes are located farther from the city, in some cases, its price is almost the same with smaller houses in the city. If you are able to find a great deal, you could probably get a bigger space without spending too much. Will you be willing to have an additional 20- to 30-minute travel time to the city? Assess the pros and cons of moving to a different location.

5. Consult the right people.

Aside from following these tips for upgrading to a bigger home, make sure to consult the right people. Although this is not your first time purchasing a home, upgrading to a bigger home can also be overwhelming. Like your first home buying journey, it is also best to have someone who will guide you throughout the process.

Good thing you have the experts at Buying Perth Real Estate. Our experienced buyer’s agents can definitely help you find the perfect deal for your home upgrade. Feel free to give us a call at 08 6215 0200 or send an email to clive@buyingperthrealestate.com.

5 Qualities of an Effective Buyer’s Agent

You’ve made the right decision to hire a buyer’s agent. But how can you be sure that they are the best buyer’s agent to meet your needs? Does your agent have all the qualities of an effective buyer’s agent?

Not all buyer’s agents are equal. Choosing the right buyer’s agent that will suit your needs and meet your demands throughout the homebuying process is important. An effective buyer’s agent can help save you time, money, avoid stress, and leave you as a satisfied customer.

Here are some important qualities that you should look for in an effective buyer’s agent:

integrity

1. Has Integrity

Having a buyer’s agent that has integrity is important to build trust and to have a good working relationship with clients. You are trusting them to get you the best value for your hard-earned money, so look for a buyer’s agent who is known for high ethical standards. A buyer’s agent who is honest and transparent with their clients goes a long way.

2. Dedicated

You need to look for a buyer’s agent that is dedicated. Being a buyer’s agent is not an easy job. A buyer’s agent should be dedicated enough to meet the client’s needs despite any obstacles thrown in their way. From searching for a good property to negotiating the price and closing the deal, a buyer’s agent should make sure that every step of the client’s home buying process goes smoothly and that the end goal is met.

experienced buyer's agent

3. Experienced

Nothing beats a buyer’s agent with years of experience in the real estate industry. Look for a buyer’s agent that has been handling homebuyers and helping them find their forever home for years. With years of experience, an effective buyer’s agent has strengthened their negotiation skills and has built a strong network. An experienced buyer’s agent also knows the ins and outs of the local area and local housing market they serve in and can give sound advice to homebuyers.

4. Good Communicator

A buyer’s agent who is a good communicator builds stronger relationships with people they work with therefore building trust and credibility. Having good communication skills means that they can give a clearer direction and have more productive conversations with the client and other parties. This will also help them in effectively resolving any problems and conflicts that come along their way.

has attention to details

5. Attention to detail

Look for a buyer’s agent with a sharp eye. Your buyer’s agent will be spending a lot of time looking at different listings, reviewing contracts and agreements, and meeting all of the client’s needs. Having sharp attention to even the smallest detail would help them spot potential problems and lessen the risks of errors. It can also help them spot rare gems and good real estate finds!

Make Sure your Buyer’s Agent Has These Qualities

People coming into the industry as buyer’s agents from a different profession or without the right background might not have the proper skills nor experience in selecting, negotiating, or giving proper buyer’s agent service. Make sure that your buyer’s agent has at least 10 years of experience in the real estate industry. Choose those who have a reputation of having high integrity in the industry are known well in the real estate community to get good deals for buyers.

Don’t just settle for any buyer’s agent. Look for effective buyer’s agents with these good qualities and you’ll surely finish your home buying journey smoothly with a satisfied disposition and no regrets.

Get a free consultation with the most experienced Buyer’s Agent in Perth at www.buyingperthrealestate.com.

Hidden Costs Homebuyers Should Watch Out For

When buying a house, there are more expenses to save up for than just the deposit. Many first-time homebuyers often end up surprised at how much more it costs to buy a property than it seems because they did not get to prepare for these hidden costs.

Hidden costs homebuyers pay can definitely take a swipe at your bank account if you don’t watch out for them. Expenses like stamp duty, transfer, and conveyancing costs, insurance, building and termite inspection, and other fees can be costly. While some of these fees can be prepared for, other fees are upfront and cannot be refunded even if your property purchase does not push through.

1. Pest and Building Inspection

Checking your home for pests and for any hidden structural damages is essential when buying a property, especially for older homes. While hiring a professional home inspector can cost you around $300-$600, this is definitely money well spent because it gives you an assurance of the quality of the property you bought.

hidden costs homebuyers stamp duty

2. Stamp Duty and Other Government Fees

Stamp duty is the tax you pay when you purchase a home. Depending on the value of your property, stamp duty can cost thousands of dollars. For example, stamp duty on a home purchase of $650,000 is $24,890 if it’s for your home and a little more if it’s an investment. Stamp duty is paid at settlement. 

However, some states like Western Australia waive the stamp duty for first-time homebuyers. You’ll only need to pay other government charges such as mortgage registration and transfer fees which can definitely help you save a lot of money. 

3. Conveyancing Costs

Having enough money for a down payment is not enough when purchasing a home. You also need to prepare for the settlement costs. Conveyancing costs include various costs that are necessary when settling a property deal. Some of these are as follows: document fees, title cost, mortgage application, etc.

Ask your buyer’s agent about these fees and make sure that everything is understood so you know how much you need to save up and to save you from unpleasant surprises.

hidden fees homebuyers of home repair

4. Home Maintenance and Repair

Although your new home passed the pest and building inspection, you still need to prepare in case there are any repairs needed. Once you move in, there can still be things in the house that needs to be removed or replaced such as door locks and old or faulty fixtures. You might change a few things on the property such as adding a fresh coat of paint, installing a new water heater, changing the garden landscaping, etc.

Yearly maintenance fees can be a cost that many don’t prepare for so it’s best to save up that amount in case any unexpected repair costs come up.

5. Homeowner’s Insurance

Buying a home is an investment. Since you will be spending a big amount of money on this, it is necessary to protect your investment. You can do this by getting homeowner’s insurance. This is especially important if the location of your new home is prone to natural disasters. Getting a homeowner’s insurance might seem like an additional cost when buying a home but you will find it absolutely essential in case something happens to your home.

woman with a key to her new home

6. Moving Costs

Your expenses when buying a home don’t end with the actual fees that you need to pay upon purchasing a home. Finally settling the deal is an accomplishment after the long buying journey but the journey doesn’t end there. You still need to take care of moving into your new home and this entails additional expenses. 

You’ll need to rent a moving van plus purchase necessary moving tools such as boxes and packing supplies. Include this in your home buying costs so you’ll be able to manage your finances accordingly.

It’s best to be prepared for these hidden costs homebuyers pay for when buying a property. Make sure that you include these fees when deciding to buy a house and saving up money for a deposit. Prepare early so that you can avoid straining your finances.

When buying a home, don’t hesitate to ask your buyer’s agents about these fees. Get a free consultation with Clive and the experts at Buying Perth Real Estate. Our experienced buyer’s agents will make sure that these costs won’t be hidden from you as we guide you through your home buying journey. Send an email to clive@buyingperthrealestate.com or call us at 08 6215 0200.

5 Reasons to Move to Perth, WA

We’ve all dreamt of living in the best city in the world. But what exactly do you look for to consider a city the best place to live in? Is it convenience? Accessibility? Nearby establishments? Finding the best place to live greatly depends on your lifestyle. Imagine what kind of lifestyle you would like to have. Then, find the best city that can satisfy your needs and wants based on the lifestyle you have dreamed of.

Are you looking for a vibrant city with lots of restaurants, museums, and theatres that you can explore? Or are you more of an outdoor-loving type of person? If you want to have the best of both worlds, moving to Perth in Western Australia might be your best option! 

Here are five awesome reasons to move to Perth:

sunny weather in perth

1. Great weather

If you’re looking for a place where you can wear casual footwear (thongs) and head to the beach when you want to, Perth is a great place to live as it almost always summer. Although it can get hot and dry during the summer months, most months are sunny with a light cool breeze. Days during winter are mild with only occasional rain, and it never snows!

people using public transportation in perth

2. Easy and convenient transportation modes

Convenience is a key factor why people choose to live in a specific location. When it comes to convenient transportation, Perth definitely won’t disappoint you! Getting around the city of Perth is easy with the public transportation services that are frequently available. There are two train stations and different bus ports that can take you around the city and into the suburbs.

If you prefer an active lifestyle, you can opt to take a walk around the city as Perth has excellent pedestrian paths. Also, along with the pedestrian paths, Perth also has the best bike paths and provisions for bike parking. In fact, many like riding their bike to work. You can maintain a healthy lifestyle by substituting car rides with bike rides. Moreover, you get to lessen your carbon footprint and help look after the environment.

perth downtown skyline

3. High Quality of Life

When it comes to the quality of life, Perth tops business freedom, safety, healthcare, and environmental quality. The crime rate is also low in Perth while having more spacious and less crowded areas.

The lifestyle of most people in Perth is more laidback than in most cities, yet the median salary is relatively high. With an efficient transportation system and high regard for living a quality life, people have more time to spend with their loved ones and to take up hobbies and activities that they love outside of work.

downtown district in perth

4. Rich cultural experiences

When living in Perth, you can be exposed to different cultural experiences. Perth CBD is home to many art galleries, museums, and theatres. Enjoy a family day out exploring different museums around the cities while schools also have school holiday programs to teach kids to make their own art.

Many people from around the world live in Perth and it has also become a melting pot of different cultures. Perth’s food scene is composed of different cuisine around the world that can be explored through different restaurants in the city and suburbs.

a beach in perth with people and families

5. Endless outdoor activities

Aside from Perth’s convenient and vibrant city life, it is a great place that has endless outdoor activities for families. As a bonding activity, families can enjoy the fresh air and beautiful view within Perth and the suburbs by going on bike rides together. There are a lot of biking paths which makes it a safe place to enjoy biking with your children. If you are not a fan of biking, you can relax while your kids are playing in the park. You can choose among Kings Park and Botanic Garden, Langley Park, Ozone Reserve, and Queens Gardens.

Also, Perth has Australia’s best beaches. Explore the scenic view or Mettams Pool, the fine sand and crystal clear ocean of Cottesloe Beach, or enjoy the restaurants and bars at Bathers Beach Fremantle. May it be fishing, swimming, or just chilling with a few beers by the beach, you can never get enough of all the activities that the beaches in Perth have to offer.

Planning to move to Perth?

Are you already convinced because of all these awesome reasons to move to Perth? Explore your options by having a consultation with the experts at Buying Perth Real Estate. Feel free to give us a call at 08 6215 0200 or send an email to clive@buyingperthrealestate.com.

Our experienced buyer’s agents will give you recommendations on the Perth property that is best for you. We are here to help you find your perfect home in Perth, Western Australia.