Valuation questions

[ej89]

Hey everyone,
Just wondering how valuers work with this situation. There was a house right on the train line and on 1000sqm that sold for 380k. It was in a 1 in 100 flood zone. It was about 200k cheaper than other homes in the same suburbs.. How would the valuation for this come through? Do they look at things like a train line? Do they know the property is in a flood zone? When I used APM it gave a val of 600k but said it wasn't an accurate valuation..

Also, with new property, they obviously compare it to sold properties in the same suburb, but if a 18 square house on 350sqm with double garage sells for 950k, how would an 18 sq home on 320sqm with single garage go on valuation? Does the 30sqm of land make a huge difference? Does the extra garage makes. Huge difference too?

Do we have any valuers on the forum?

 

[Scott No Mates]

Plenty of questions to be addressed in this one:

1) was the sale out of line ie. did the owner get divorced and the amount paid reflect the settlement only? (or was the sale to related parties/partial interests etc) - these are all questions that the valuer addresses when looking at out of line sales.
2) rail line/main road - yes there would be some adjustment (downwards for this)
3) flood zone - this would also adversely affect the value (as it would cost the buyer more to build a flood compliant house). This is shown on the S149 (zoning) certificate
4) APM is a wild guess tempered by some complex algorithms (ie does not necessarily reflect reality)
5) The house value in both cases would be about the same however the valuer would adjust for the garage and work out the residual land value to adjust for the land and any additional landscaping/outbuildings, location, side of street, aspect, attractiveness of neighbour's partner, facilities. The additional garage/paving might make a $10-15k difference.

 

[ej89]

Plenty of questions to be addressed in this one:

1) was the sale out of line ie. did the owner get divorced and the amount paid reflect the settlement only? (or was the sale to related parties/partial interests etc) - these are all questions that the valuer addresses when looking at out of line sales.
2) rail line/main road - yes there would be some adjustment (downwards for this)
3) flood zone - this would also adversely affect the value (as it would cost the buyer more to build a flood compliant house). This is shown on the S149 (zoning) certificate
4) APM is a wild guess tempered by some complex algorithms (ie does not necessarily reflect reality)
5) The house value in both cases would be about the same however the valuer would adjust for the garage and work out the residual land value to adjust for the land and any additional landscaping/outbuildings, location, side of street, aspect, attractiveness of neighbour's partner, facilities. The additional garage/paving might make a $10-15k difference.

hahaha the attractiveness of neighbours partner..

1. yes. Owner died so grandkids sold at any price. Had it listed for 520k but fell through twice and came to point they asked for any offers and 360k got accepted..
2. I figured it would
3. So the valuer will definitely look at all flood mapping?
4. sweet thanks
5. thanks. Should help me a fair bit then . Wonder how synthetic grass goes haha

 

[ej89]

I'd seen a couple of houses in a blue chip location in Melbourne that were priced around 200k cheaper than the same house in same suburb because they were on a road that seemed to be the main road (double lane).. Must be a big difference in valuation..

 

[Scott No Mates]

I wouldn't expect that big a difference possibly 5-10% but it would depend on the road, the suburb and the house (unless affected by a road widening)

Have a read of Rost & Collins (from the library) - that'll put you to sleep.