The price your home would sell for is not always the same as the council-determined value

When property owners are receiving their council rate notices, not only are they interested in the rates bill but also the value of the property.

It is important to know, however, that the value determined to your home by the council is not always the same amount you will receive if you were to sell your home tomorrow.

The primary purpose of a council valuation is to provide a basis for determining the property owner’s contribution to the council’s consolidated revenue. The valuation is determined every two years on January 1 by qualified valuers engaged by your council.

The council valuation will provide a guide as to the price you may achieve if you are intending to sell.   However, you should also undertake a number of other steps to determine the value of your property.

You can ask an REIV member to undertake a market appraisal.  This will provide you with the opportunity to discuss with them the factors that impact property values.

When your property goes on to the market it is important to remember that prospective buyers often look at a range of homes within the same location. As such, it is wise to make an effort to understand the local market. You can do that by checking the sales results each Saturday night at www.reiv.com.au or in the Sunday newspapers. There are also a range of websites that will provide you with information about how much properties in your area have sold for over the last few weeks, months or years.

Finally, when you actually sell, remember that the demand for your home will be influenced by what other properties are for sale in your area and the number of buyers looking.  This means that the marketing and preparation of the home will also influence the sale price.

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.