Pully,
Not sure what you have to do in SA but in NSW the legislation says that a REA must, in relation to establishing their opinion of Estimated Selling Price look at SEVEN key areas:
1. Market conditions, which take into account:
a. Economic outlook of the general property market, e.g. interest rates, state of the economy etc.
b. Local market issues such as supply and demand.
c. Any other issues of relevance at the time.
2. Comparable sales, comparing like for like in terms of land & buildings, views etc but making allowance for:
a. Variations in property features.
b. Changes in the market over the time period.
c. If there are no directly comparable sales, then source other information to help make an assessment.
d. Any other issues of relevance at the time.
3. Optimum / alternative uses. They must assess whether or not there is any potential for an alternative use of the property that might be suitable for a niche market. These might be, for example (but are not limited to):
a. Redevelopment of the site, possible amalgamation with adjoining properties.
b. For professional use, e.g. medial surgery, etc
c. For alternate use, e.g. bed & breakfast, etc
4. Restrictions. They must make allowance for any restrictions that may have an effect on the price, such as:
a. Resumption of land by a public authority, e.g. road widening, etc.
b. Flight paths.
c. Various easements and rights of carriageway.
d. Heritage listing etc.
e. Any other issues of relevance at the time.
5. Property features including:
a. Local government zoning of the property.
b. Architectural features.
c. Proximity to amenities such as shops, school, transport etc.
d. Condition of the property.
e. Size, shape and slope of the land.
f. Any other issues of relevance at the time.
6. Special conditions. The contract of sale might be subject to particular circumstances, such as:
a. Extended (or reduced) period for settlement.
b. Subject to a tenancy, therefore vacant possession is not offered.
c. Lease back of premises for the vendor.
d. Release of deposit on exchange.
e. Any other issues of relevance at the time.
7. Other relevant facts and specific instructions that have had a bearing on the determination of the estimate. For instance:
a. Vendor’s preferred method of sale.
b. Vendor’s instructions being contrary to the selling agent’s advice (if known).
c. Particular requirements or instructions relating to the selling agent’s marketing campaign / strategy.
d. Any other issues of relevance at the time.
