Valuers & Real Estate Agents

I have just sold my commercial property at Raymond Terrace, it was valued at the time of my husband's death 2 years ago at $x amount of dollars. I subsequently made the decision to sell the property and asked an agent about 9 months ago who specialised in commercial properties to give me an opinion on the sale price of the property, the opinion of value came in at between valuers $x plus $50,000.

I sold the property for $200,000 more than valuers valuation and $100,000 more than highest value given by agent. The one fact I believe neither checked was the sales data of the street my property is in and the street running parallel to it. After looking at the data I realised that both streets were tightly held and sales were few and far between. This is what I based my sale price on, I was literally inundated with buyers :D the first buyer fell out, that same day I contacted the next buyer, he offered me more than the original buyer and has bought the property.

What if I had not done my homework! I would have been a lot poorer. So the old adage of POSITION, POSITION, POSITION is still applicable.

As I write this another buyer has just phone me for the 3rd time to ask if the property sold :)
 
Wow, balwoges - well done!

It is my understanding that the valuer would have been basing the value of the property off similar properties in the area - therefore if there hadn't been many sales in your street recently, he/she would have looked further afield and probably wouldn't have taken into account the higher regarded position.

The real estate agent, on the other hand, should have known better. Did you sell it privately or through an agent? Did you get other opinions from different agents?
 
Don't know about Comm, but in Resi, valuers can only use sales within the last 6 months, and only those which have settled.

Agents can also work in a similar fashion, but in the absence of sales, they can make an educated estimate (you'd hope).

So, if there are no sales in that time, or even if there have been some but not settled; they are not included from the valuer's point of view..

We have first hand experience with this, currently.

My guess is it is similar in Comm, however in Comm there is also the rent yield as a factor in valuing a property, I believe.
 
Getting comparable sales data from tightly held areas is difficult however valuers work on a sustainable long-term yield rationale not solely by direct comparison (usually a secondary measure).


If you applied the nett rent/valuations (2 years ago) & compared to what has been achieved - how did they fare?
 
Wow, balwoges - well done!

The real estate agent, on the hand, should have known better. Did you sell it privately or through an agent? Did you get other opinions from different agents?

Sold it myself, was surprisingly easy ...however I was a licenced REA in another life. Didn't get another agents opinion as I was thinking of selling it myself and I know how I hated being used when I was working as such.
 
Getting comparable sales data from tightly held areas is difficult however valuers work on a sustainable long-term yield rationale not solely by direct comparison (usually a secondary measure).

If you applied the nett rent/valuations (2 years ago) & compared to what has been achieved - how did they fare?

If I could easily look at comparable sales data why couldn't valuer/agent?

The nett rent/valuation as of now would be a little better, however, I believe the site which is within a 2 min walk to Raymond Terrace shopping centre was the attraction and I think the new owner has plans to develop it.
 
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