Valuing a Property

Discussion in 'The Buying & Selling Process' started by MTR, 31st Mar, 2017.

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  1. MTR

    MTR Well-Known Member

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    Curious as part of valuing a property when buying, do you work out the $ value of the build, per sq or do you use comparable sales as a guide?

    MTR
     
    MTR, 31st Mar, 2017
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  2. paulF

    paulF Well-Known Member

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    If it's an older property, I aim for land price.Comparables for a newish or renovated one.
     
    paulF, 31st Mar, 2017
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  3. Perthguy

    Perthguy Well-Known Member

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    Comparable sales. The newest house I have bought was 45+ years old, so $ value of build is a bit irrelevant.
     
    Perthguy, 31st Mar, 2017
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    $ value of demo is important
     
    Scott No Mates, 31st Mar, 2017
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  5. Perthguy

    Perthguy Well-Known Member

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    Reno, not demo ;)
     
    Perthguy, 31st Mar, 2017
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  6. DaveM

    DaveM Well-Known Member

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    Land value, CIV and comparables, plus divided land value, highest and best use, market sqm rates for commercial... its not a one size fits all approach. Real estate professionals and valuers use a myriad of methods
     
    DaveM, 31st Mar, 2017
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Valuation is a black art, I have recently started using a Ouija board with astonishing results.

    Really.... they're out of this world. :p
     
    Scott No Mates, 31st Mar, 2017
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  8. Xenia

    Xenia Well-Known Member

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    When agents appraise properties a guideline is:
    Equivalent building area - compared to similar properties sold recently in the area
    Condition of property
    Land size

    If a block is not subdividable and you are comparing two similar properties, the one with the bigger house would generally sell for more
     
    Last edited: 1st Apr, 2017
    Xenia, 31st Mar, 2017
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  9. New Town

    New Town Well-Known Member

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    Recent sales of similar properties in the streets nearby are the best guide. I'll check rarios such as price to house size and price to land size as well as statutory land value just as a rough guide. Try to pull together factors such as likely rent, condition, position etc
     
    New Town, 1st Apr, 2017
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