Residential property valuation

[northie]

Hi all
Im in the process of considering selling my property in Hills area.

In considering past sales, type of property replacement cost, condition etc to come up with a valuation, what proportion of the final valuation will be attributable to the location of the property?
To put it another way, all things considered apart from its location within a suburb, how much will the location of the property contribute to its final value?
For example will it be a 5%, 10%? difference say it was on good street x versus not so good street y?

Any property valuation gurus out there that might be able to help is much appreciated.

 

[mortgageman]

Hi Northie,

The affect of the location on the valuation price would mainly depend on comparative sales in the area. Unless there was something in the street that would adversely affect the price compared to properties that have been sold in surrounding streets (for eg. if you are next to a train line, next to factories, high voltage towers etc), the price of your property should be equivalent to similar properties that have been sold within the area in the last six months. Similarly if your property has advantages over the comparables used (views, closer to water etc) this can push the price up. Its impossible to put a percentage value of the price to the street location, but hopefully this has been a little bit helpful.

Kind Regards,

Cameron Perry
Perry Financial Strategies

 

[dave99]

The valuation is not really made of different components like replacement cost, location, features, which are all added together.

Instead, the location determines the comparable sales, which establishes a baseline for the type of house (by number of beds/baths). Then the specific features of your property will add or subtract on that baseline. So location is not a component, is more the baseline of the whole valuation.

 

[northie]

Thanks for the replies. Its been very helpful.

 

[Jacque]

Hi Northie from a fellow Hills resident

If you're aiming for maximum value then do your own research into the latest comparable sales (buy data, look up sales on the main RE sites, ring REA's etc) drive around and physically see the properties you believe are directly comparable to yours.
Be prepared and able to substantiate your opinion of value if/when the valuer returns a figure that you're not less than satisfied with. I say this because when I got my Hills PPOR revalued for a refinance in past years, the valuation came back lower than anticipated and I was able to put forward my argument for a higher valuation successfully. The comps he used were on busier roads, in one case smaller by a bedroom and another was at least 20yrs older than my place.

Yes, the market has changed and things aren't as fast moving now as they were back then but if the valuation doesn't go your way you can always discard it and try to get a higher price regardless. Just don't go too far the other way and overprice or else you'll be stuck with a stale property that won't sell for months.

Are you selling yourself? I did and ended up getting full asking price in Baulkham Hills so best of luck

 

[rossdc]

I just asked for what a valuation came in on one of our properties in Cairns. I cant comphrehend how the figures come in at as it is valued for less than loan amount??but we have had the loan approved to build a brand new house just down the road from the one valued which we buil a year ago.????. Basically if loan not approved I would of submitted previous sales in area, there has only been two in same area and we bought them!!!
You cant build a 4 bedroom 2 bathroom home on the northern beaches for under $400,000.00.So how can a valuation comes in under $350,000

 

[northie]

Is there a buffer built into a valuer's valuation (vs expected sale price) to protect their legal liability?
If so is there a rule of thumb on the size of the buffer? 5%? 10%?