How Can I Find Out How Much My House Or Investment Property Is Worth

Good day! My name is Ben Everingham and today we’re gonna talk about how can you find out how much your home or investment property is worth.

Good day! My name’s Ben Everingham and I’m the director here at Pumped On Property and today we’re gonna talk about how you can find out, either yourself or through somebody else, how much your home or investment property is actually worth. So there’s a couple of things that I want to talk about today, some of them are free, some of them are paid, some of them you can do yourself, and some of them you can engage other people to do. But there are a lot of different options in the market place right now to find out how much your house or investment property is worth.

So the first way is sort of the formal way, and I call that the valuation way. So there’s three different ways you can actually organise  your valuation. You can talk to a mortgage broker, and they can organise it on your behalf and generally, that’s free. You can talk to your bank manager and they can send somebody out there, and that can sometimes be free or some of the banks charge you for that. Sometimes you can push back on them and say, ‘I’m thinking of buying another investment property, I’d really like you to do an evaluation to see if we can do it together.’ The third way is to find an independent valuer who you engage and pay for and they go out there and do that independent valuation. But at the end of the day, that’s probably the best way to ascertain what market value is for the property. You’ve got to remember that in different market places, sometimes evaluations are realistically market value, sometimes when banks, or lenders, or the government’s cracking down, valuations can come well under what it could sell for. Everybody’s seen that in Sydney, Melbourne, parts of Brisbane, at the moment, particularly with brand new products. At the end of the day, that’s probably your best bet and easiest place to start.

So after you’ve talked to your broker, your bank manager, or an independent valuer, the thing you’ve got the remember is that it’s just their opinion. And so there’s some things that you can actually do to improve or enhance that opinion, or at least tell a more balanced story. I’ll talk about those in a moment, but the thing you’ve got to remember is that this evaluation isn’t cement. If you don’t love the evaluation you received, and you know, you think about it logically, obviously sometimes you’re not gonna love it because everyone thinks their property or investment property is worth more than it might be. But if the valuation is completely off, like a hundred or a hundred fifty grand below market value, sometimes you can go to another bank and order another valuation. Just remember that every time you order valuation, you get a little red flag or a little tick against your name. So if you order too many of them, it can actually work in the reverse way and can affect your credit rating and your ability to go get another loan, if that’s what you’re trying to do.

In terms of the things that I’ve learnt that helps support that business case around evaluation, cause from my perspective, people order evaluations at the wrong time almost every time, and they don’t time these valuations very well either, they don’t think that what’s important to the valuer. So for me, generally, let’s say I bought a property today, I won’t value that property for another two years. The reason being I want to make sure I bought a bit below market value so I can justify a little gain, I want to make sure I bought in the rising stage of the market so I make my little five percent this year, five percent next year in capital growth. I might then come back and do a little cosmetic renovation and add a bedroom or bathroom, which might add another five or ten percent of value to the property. And so, what I want to do is provide a little report for the valuer which they legally have to take into consideration, with comparable sales in the local area. I want to show them what the average price growth in the area’s been over the last couple of years, I want to show them what I bought, and what I’ve done to the property since I bought it. So some before and after photos. I want to show them, at the time of buying, that the property was below market value. And I just want to create, I suppose, a bit of a business case for them to take into consideration around my property because they’re gonna do a lot of that themselves, but they don’t know what they don’t know. So it’s good to sort of help educate them in a way, and make sure they’re taking all the moving pieces of the pie into account.

The second thing is some online tools. So there’s a bunch of awesome websites out there, obviously. One of those is OnTheHouse, which is owned by Residex. You can just punch in your address, a basic evaluation will come on the property. Again, there’s generally a range. I’ve noticed that their data seems to be, quite often, the range is generally massive. So there’s some other paid sources that you can get evaluations from. Which is like, RPData, for example. I found RPData’s evaluations, which are the ones we use, are the most conservative in the industry. So if you can buy below, when you’re buying, what the RPData evaluation is, or if you’re valuing your own home, just know that the RPData evaluation, in my perspective, is generally between ten and fifty thousand dollars below what it could sell for if the right agent in the area was listing the property. And then there’s also Real Estate Investor, which just went public in 2015 – 2016. Again, another paid source of data, but they do have evaluations. I normally find the range on the house is huge, and they’re evaluation is generally at or above market value of what it could sell for.

There’s some tools to begin piecing together an idea of what it’s worth.

The third thing and one of the easiest things you can do is jump on or, identify who the three top performing agents are in your suburb, and get those guys out to do an actual sales appraisal on the property. Between three different people telling you what it’s at, just remember all three of those people are gonna be above market value because they’re all wanting to get your listing. But if you make sure that they know you’re looking for a realistic evaluation, it might be closer to the point. So that could be a great way to understand where the market’s at from a sales perspective, as well. Because generally, these data sources are old, sometimes it can take between one and three months for the data to actually go into places, like or Real Estate Investor. So it’s really important to have that local perspective, because markets do move over time.

The fourth thing and the last thing that I wanted to talk about in terms of how you could find out how much your property or investment property is worth is another free tool. Jump on something like or domain, and have a look on the buy page, in terms of what’s selling right now. Remember to have a look at the average vendor discount for the suburb before you jump on, because if the average property price in the suburb is 400K, and the average vendor discount is five percent in that suburb, you can take five percent straight off the top of the four hundred grand, and that’s actually what things generally sell for on average, but there’s obviously places that sell well below average, and above. That’s why it’s an average point. But having a look at the buy side of things, see what’s selling, and then having a look at the sold things, which is awesome part of what and domain are starting to do. So that you could have a look at comparable properties and see what things are selling for.

So I’ll take a breath, there’s so many different ways you could do this. Each of them have their own merit. You could start with evaluation from the broker from the bank, or an independent guy. You can look at some of the free online tools like OnTheHouse and You could get some local agents out to the property, or if you’ve got someone inside the industry, or you’re paying for tools like RPData, or Real Estate Investor yourself.

So I hope you’ve got some value out of today’s video. There’s so many different ways you could look at these stuff. Until next time, stay hungry!

Ben Everingham


Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.