Auction Prices

[TOTS]

XbenX sorry to disappoint you but there is no ideal system... you need to asses each property on its merrits. Then apply the best structure, not system to efect the sale for maximum profit to the owner.

I didn't mean to imply I had a perfect system, the whole real estate industry needs reform in my opinion.

 

[WillG]

Hi Investor,

The allhomes site is a great reference for working out what a place is worth based on presvious sales however unique houses that haven't sold in the past 10 years prove a bit harder.

In calculating what the House going to Auction is worth I had to estimate what the house and block of land are worth.

I would be interested to hear how you calculate the 'market' price of a block of land. The UCV is a good baseline but vacant land will often sell for more. For example, there are now blocks of land available (courtesy of the bush fires) in Canberra for apx $160k - $180k (UCV apx $90k to $110k). Does a ratio of 1.6 to 2 apply to all blocks of land ?

Note : I make an assumption that a cleared block of land is worth more than the land component of a House & land package.

I believe that doing some calculations like these along with observing the prices of similar houses in the nearby neighborhood should yield me a price range.

I would appreciate comments from real estate agents who have been involved in the valulation process

 

[Ross Sneddon]

Originally posted by WillG
Hi Investor,

Note : I make an assumption that a cleared block of land is worth more than the land component of a House & land package.

A builder or developer will assess the land component as the sale price of the house and land plus a figure to remove the house and prepare the site for the new construction.

It costs about $5,000 to $10,000 to pull down a house and clear away the rubble.

Regards

Ross

 

[WillG]

Let me rephrase the question ...

Here are some hard & fast figures for the house in question.

Land UCV : $193000
House Value :
- 220 square meters double brick @ $1000 / sq meter
- $220000
Brick Garage :
- 22 square meters @ $600 / sq meter
- $13200
Misc :
- Gardens, decks, other
- $15000

Total replacement value : $441200

Note : The values above are conservative

Question :
Should I value the land @ the UCV or at a higher value to get a true value for the house + land ?

Question :
Can somebody verify if my rough calculations make sense ?

 

[karsal]

Ouch guys!

Why are we the villains?

Whatever happened to doing your own research?

As mentioned before: Don't trust us! Don't ask us!
Follow the market in your area and get a feel for the values.

AS for the sales system, I don't auction in my area as there isn't enough demand to push up prices.

Some agents are auction only whilst others are anti auction. Choose what's best for your area.

Sadly, sometimes vendors knock back a good offer prior to auction only to sell it for less on the day. This can be due to either vendor greed, or agent high balling to get the listing. I think you already know my views on these issues.

Use an incentive based fee so that the agent will work harder for you.

With regards to agents being the winner, are we supposed to work for free? Are you jealous that we make big $$$?
Give us a break. If it is all so easy, then do it yourself.

Better still, I challenge anyone to come and work for me for 3 months and see how easy it is.

For a change, these comments are not made tongue in cheek, as I can't believe some of the comments made on this thread.

I'm sure that this will stir the pot.

Always cover your butt,

Sam

Ps: A wise man once said that you should never go with your gut feeling, because we all know what comes out of your guts.

 

[TOTS]

Originally posted by karsal
Ouch guys!
Why are we the villains?

Use an incentive based fee so that the agent will work harder for you.

With regards to agents being the winner, are we supposed to work for free? Are you jealous that we make big $$$?
Give us a break. If it is all so easy, then do it yourself.

Better still, I challenge anyone to come and work for me for 3 months and see how easy it is.

For a change, these comments are not made tongue in cheek, as I can't believe some of the comments made on this thread.

I'm sure that this will stir the pot.

Always cover your butt,

Ps: A wise man once said that you should never go with your gut feeling, because we all know what comes out of your guts.

Sorry Sam but please let me know your agency and where you are.

 

[Sim]

Enough guys ! I'm sick of you lot latching onto any thread about real estate sales or agents and pushing your own agendas. The threads always end up way off topic.

WillG was asking about how to work the agent at an auction - and now the thread has become yet another agent/auction bashing contest.

I will not tolerate this any more - future off topic meanderings on these subjects will be dealt with harshly. Pull your collective heads in unless you have something CONSTRUCTIVE to post.

Thank you.