|How do you judge the value of a property?|
|26/07/2013 - [ Source: ]||
When it comes to judging a property to get a reasonable indication of its value and probable sale price there are three options you might consider.
First, a real estate agent can give an appraisal which is largely an educated guess based on their current sales experience and local knowledge. This is informal but usually pretty helpful as an indication.
Second, an owner or buyer can hire a professional valuer to produce a more formal and authoritative report. These reports are based on sales information held at Landgate and from information obtained from real estate agents on recent sales not yet reflected in the government data. Usually these are the reports which banks and legal bodies will accept as valid for lending and legal purposes.
A professional valuation removes any perception that there might be a bias on the part of real estate agent appraising a property and is regarded as more independent.
Most of the companies which provide this service are based on the east coast of Australia and have few or no staff here. This means that the reports are largely put together based on Landgate data showing the last sale price and then calibrated to place the property in the context of the current market.
While that might sound quite reasonable, such reports can only be based on the unimproved value of the property since its last transaction.
These things are not readily detectable through an arms-length report based on data rather than being produced by actually sighting the property and being familiar with its history.