How Much Is Your Home Really Worth? What Impacts Property Value in 2026

One of the most common questions homeowners ask is, “How much is my property actually worth?”
While online estimates can provide a rough guide, the true value of your home is influenced by a combination of market conditions, location, property features and buyer demand and these factors are constantly changing.

Whether you’re considering selling, refinancing, or simply want to understand your asset better, here’s a clear breakdown of what really impacts property value in today’s market.

1. Location Still Leads the Way

The old saying holds true: location is king.
Proximity to quality schools, public transport, shopping precincts, parks, cafés and employment hubs continues to play a major role in property value. Homes in tightly held suburbs or near lifestyle amenities such as beaches, rivers or vibrant town centres typically attract stronger buyer competition.

In many Perth suburbs, buyers are prioritising convenience and lifestyle more than ever; walkability, access to public transport and nearby green spaces can significantly influence demand and price.

2. Land Size, Zoning and Potential

Land remains one of the most valuable components of a property. Larger blocks, corner lots and properties with favourable zoning often command a premium, particularly when they offer future development or subdivision potential.

Even if buyers don’t plan to develop immediately, the flexibility and long-term upside of land value can strongly influence what they’re willing to pay. Understanding your zoning and land potential can reveal hidden value that many homeowners aren’t aware of.

3. Condition and Presentation Matter

While location sets the foundation, presentation can make or break a sale price. Well-maintained homes that feel clean, light and move-in ready often outperform comparable properties that require work.

Simple improvements such as fresh paint, updated flooring, modern lighting and tidy outdoor spaces can significantly improve buyer perception. In contrast, properties that appear neglected may attract lower offers even if the fundamentals are strong.

Buyers today are time-poor and cost-conscious, and many are willing to pay more to avoid renovations.

4. Floor Plan and Functionality

Modern buyers place a high value on liveability. Homes with practical layouts, open-plan living, multiple living zones and flexible spaces (such as home offices or additional bedrooms) are in strong demand.

Family-friendly floor plans, good separation between living and sleeping areas, and seamless indoor-outdoor flow all contribute positively to value. Even smaller homes can achieve strong results if the layout maximises space and functionality.

5. Market Conditions and Buyer Demand

Your home’s value doesn’t exist in isolation; it’s influenced by the broader property market. Interest rates, lending conditions, buyer confidence and stock levels all play a role.

In markets with low supply and high demand, properties often achieve prices above expectations. In softer conditions, pricing strategy and presentation become even more critical. Understanding current buyer behaviour in your suburb is essential to determining realistic value.

6. Comparable Sales in Your Area

Recent sales of similar properties, known as comparable sales, are one of the most reliable indicators of value. These provide real-world evidence of what buyers are currently willing to pay.

However, not all sales are equal. Factors such as timing, condition, motivation of the seller and method of sale can impact results. A professional appraisal takes these nuances into account rather than relying solely on headline prices.

7. Renovations: Do They Always Add Value?

Renovations can increase value, but not all upgrades deliver the same return. Kitchens, bathrooms and outdoor entertaining areas typically offer the strongest impact, while overly personalised renovations may not appeal to the broader market.

Before investing in upgrades, it’s important to understand what buyers in your area value most and whether the cost will be reflected in the final sale price.

So, What Is Your Home Really Worth?

Ultimately, your home’s value is determined by what a buyer is prepared to pay in the current market, not an algorithm or a generic estimate.

A professional appraisal considers all the factors above, along with local knowledge and real-time buyer feedback, to give you a clear and realistic understanding of your property’s position in the market.

If you’re curious about your home’s value, planning a move, or simply want to understand your options, speaking with a local property expert can provide clarity and confidence — without any obligation to sell.

If you’re thinking about selling and would like personalised advice on which upgrades will deliver the best return for your property, the Empire team is always here to help.

What is my Home Worth? Request a Property Appraisal to find out!

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