Hi maybe you can help me out here......
I finally decided to get my dual occupancy revalued as I was aware that (finally) the local market had moved. This was confirmed by agents, actual sales prices I was aware of, Residex and even by the local valuers themselves. Having been confounded by valuers here before I rang and spoke to them about the basis on which it would be valued. He confirmed that “the only way to do this was by comparison with recent sales although dual occupancy are rare (here) it could be compared with duplex sales” (of which there have been at least 8 in the last few months). Being happy with this I asked him to proceed.
A week later I get my valuation – only 2.6% higher than about 18 months ago (reason being I have increased the rent) – the basis on which it is valued is on net rental return – ie gross rent less 2-3% for vacancies, rates, water, insurance, R & M and management – then capitalised at 8%. Although these weren’t identified in the report I rang him to confirm how he had come to this conclusion – I also disagree with this mathematics.
He did a comparison of recent sales of duplexes that ranged in net rental return of 6 – 8% from sales 3 – 5 months ago.
But it gets worse – he did a valuation of the land and buildings – somehow I don’t know how but it is less than last year’s valuation!!!!! I know of sales of similar houses in the street that if doubled would be well in excess of this valuation or what I expected.
But what makes me even more upset and frustrated is that with this method of valuation I will only ever get an increase in valuation if I manage to increase the rent and with costs such as rates, insurance and other fees always increasing my property will probably never increase in value. Or sell.
HELP – how can I get them to change their valuation?
Cathy
I finally decided to get my dual occupancy revalued as I was aware that (finally) the local market had moved. This was confirmed by agents, actual sales prices I was aware of, Residex and even by the local valuers themselves. Having been confounded by valuers here before I rang and spoke to them about the basis on which it would be valued. He confirmed that “the only way to do this was by comparison with recent sales although dual occupancy are rare (here) it could be compared with duplex sales” (of which there have been at least 8 in the last few months). Being happy with this I asked him to proceed.
A week later I get my valuation – only 2.6% higher than about 18 months ago (reason being I have increased the rent) – the basis on which it is valued is on net rental return – ie gross rent less 2-3% for vacancies, rates, water, insurance, R & M and management – then capitalised at 8%. Although these weren’t identified in the report I rang him to confirm how he had come to this conclusion – I also disagree with this mathematics.
He did a comparison of recent sales of duplexes that ranged in net rental return of 6 – 8% from sales 3 – 5 months ago.
But it gets worse – he did a valuation of the land and buildings – somehow I don’t know how but it is less than last year’s valuation!!!!! I know of sales of similar houses in the street that if doubled would be well in excess of this valuation or what I expected.
But what makes me even more upset and frustrated is that with this method of valuation I will only ever get an increase in valuation if I manage to increase the rent and with costs such as rates, insurance and other fees always increasing my property will probably never increase in value. Or sell.
HELP – how can I get them to change their valuation?
Cathy
