15. December 2015 02:45
Blog . Real Estate
This is the quintessential favourite question for many property owners and buyers and real estate experts alike, and a question which depending on who you talk to, has lots of different answers with potentially huge variations on the values.
All owners of course value or see their property through a set of different eyes to what an independent third person does. This is called the "endowment effect" and is the reason everyone perceives their own pet dog, football team, choice of restaurants/ wines etc. as "special" and the best. Clearly everyone has a view on these matters, and this is always subjective, as it is with the value of a property. Fortunately, some methodology can be applied to assist in determining value.
TYPICAL METHODS CENTRE ON SOME OF THE FOLLOWING:
1) Comparable sales evidence (make sure "apples for apples" comparisons). This is actually the most reliable as long as the sales evidence is recent, and similar in its comparison. Also it is essential that the market has not changed since the comparative sale occurred. NOTE: Scarcity or uniqueness or what we call "WOW FACTOR" can add 10-20% in some cases to what seems reasonable market value. Sometimes, "BRAND SPANKING NEW" achieves the same outcome.
I often smile how some owners will see sales evidence compared to how some buyers see the same properties. Each sees "comparable" properties to suit their own arguments. The main areas to compare are land size, land location, frontage, elevation, views, high side or low side of the road can matter, front or rear, even the direction that the block faces. Then the next most significant determination is the quality and value of the improvements, i.e. the house. Owners rarely allow enough depreciation of dwellings once they are ten or more years old, and buyers usually depreciate them too much.
2) Land value plus improvements- Owners don’t realize that once a house is built on a block, the property is no longer a "house plus a block" but a going concern. It is often the case that vacant land sells for a premium of up to 10% more than what would be paid for an old house on it. This is because the only purpose for a vacant block is to build on, whereas once a house is built, it is unlikely that the property will ever be used as a building block again for 20-40 years, so the buyer is one that wants that exact house and the improvements that come with the block.
3) Comparing to asking prices of similar properties- The worst and most unreliable method as asking prices often have no correlation to sale prices or market value. We have seen homes come on the market for $8.8M and then sell for $6M, we have seen homes take 2 years to sell, and we have seen buyers offer 30% below asking prices. Really asking prices are irrelevant to market value. Sellers and buyers should ignore them. Asking price really means "Wish for price". More and more you are seeing property come to market without a price, as agents and owners realise the value of having buyers focus on the home, not the price.
OTHER SOURCES OF OPINIONS OF VALUE FOR A BUYER OR A SELLER:
1) Neighbours- I believe one of the worse sources of reliability. There is enormous self interest in "wanting" the value to be more. Not reliable or impartial at all.
2) Other agents- As above. Many agents will "bag" other agent listings, especially if there is resentment that they think they should have won the listing or strong competition between some agencies. Often, the "expert" agents have not seen the property in question.
3) Valuers- Can be reliable, often at the conservative end of the scale, and rightly so.
4) The selling agent- Can be biased, have emotional investment in the valuation of the property. Will certainly be able to justify her opinion as to value if any good as an agent.
5) A specific buyer- Only qualified to what she will pay, not indicative of market value. Some buyers are really way off, we often see buyers make offers 10-20% below what we sell them for. We refer to these buyers as "bargain hunters" and are often making low ball offers on properties. I have never met a seller that wants to sell to a bargain hunter. We can pick these buyers by the type of questions they ask. They are more interested in "the deal" than in the home. We find many buyers are 6-12 months behind in their understanding of values, as they pay too much attention to graphs and old sales evidence from a year or so ago, and do not update based on recent market activity. Also, we have sold properties for $500,000 more, or 15% more than a specific buyer was adamant that a particular property was worth on a given day, proving no one buyer (or seller for that matter) determines market value.
6) The seller- Can be biased as they are emotionally attached to the home. Often they will rate erroneous and subjective factors in determining value such as their wants, needs, or even a wish for price that they had in mind. They often perceive certain improvements as adding a lot more value than what it actually does to a buyer.
7) Mates/ friends of seller- As for neighbours. We find in some instances that the friends that are trying to provide support, and may have watched a few too many Foxtel episodes of "How to make a $1M property sell for $1.5M" have strong views of value that do not match current market conditions. The active local agents will always have the up to the minute feel of the market and often be 3-6 months ahead of the papers and graphs on the official websites.
WHAT IS CURRENT FAIR MARKET VALUE?
After the property has been tested in the market for a reasonable amount of time (I think 45-60 days is plenty) and buyers have had a chance to see the property, it should sell. If it doesn’t then there are only a few reasons.
1) Agent is not doing her job.
2) Poor marketing (refer to 1).
3) Price is wrong.
4) Wrong or poor location (refer to 3).
5) Poor market (refer to 1) and 3).
6) Seller is not motivated to sell or unwilling to meet the market.
7) Absorption rate (Too high a supply for the current demand on that particular property type and market segment).
8) Demand for that specific market segment slow at moment. (Some price segments move through different phases through an economic cycle)
Ultimately, the property is worth what a willing buyer is prepared to pay at a given moment, and able to fund ***, persuaded by a competent and skilled negotiator. After having exposure to a fair pool of buyers, that result is called "fair market value". ***NOTE: offers made by buyers that do not have the ability or capacity to fund in this tight market are not indicative of market value.
30. November 2015 11:34
Blog . Real Estate
The following is designed to help you understand the process of photographing your home for sale:
- The photo shoot should take between 30-60 mins (longer if video is required or interactive floor plans are being done and we do not have existing floor plans or if the home is exceptionally large, even in the case of twilight shoots where we are waiting for the right light, it could be up to 2 hours).
- If you have special requests as to certain shots (In or out) please let me know in advance.
- I do like the seller to be home if at all possible as we may need to move things around slightly, but it isn’t essential if you can’t manage to be there.
GENERAL OVERVIEW :
The following are some easy to follow practical steps to help you and ensure we get you the highest price by appealing to the best buyers.
WHY THE NEED TO PREPARE FOR PROFESSIONAL PHOTOS?
- Buyers are time poor and these days everything real estate is about the visual medium of the internet. Presentation and its effects (good or bad) is massive on the outcome.
- We have about 8 seconds to catch a buyer's attention in what is a competitive real estate market.
- You get one chance to make a great first impression. A great photographer and agent still needs some assistance so that we can as a team can help make your property shine and stand out from the crowd.
- Well-presented homes should sell for more and generally a lot faster. Whilst it is impossible to quantify this, it is generally accepted in the industry by real estate professionals, great presentation can easily affect sales price by as much as 10% or more.
- We all know anecdotally that poorly presented homes will affect buyer’s emotions far less and this logically means more procrastination by buyers (longer on market) and lower offers.
- We are not allowed to “Photoshop” images if it means there is any form of misrepresentation. Photographers can “enhance” images slightly for maximum appeal, as long as we don’t fundamentally change what is there.
Image enhancement doesn’t and won’t:
- Stretch rooms to make them look bigger
- Make pools look clean
- Make windows or carpets clean
- Make lawns green
- Block neighbour homes or power lines etc.
- Zoom in to views to an extent they are not representative of what the buyer actually sees (With the naked eye)
I hope you get the message. The best photos accurately reflect what is there in a positive and maximum potential way. Buyer always dislike inaccurate photos, and worse sellers (and agents) could be sued if it was intentionally deceiving.
So in a nutshell, it pays you handsomely to do this well, in time and money.
WHAT WILL WE PHOTOGRAPH?
I need a minimum of 4-5 photos even for a land value property or block of land simply as that is how many photos appear on a web page. The rule of thumb that I follow is that if the photo doesn't add value, I won't use it. (The old saying “Less is more”).
For larger homes, typically I usually want 12-20 photos.
We will normally shoot the following;
1) Front elevation (but not always), maybe 2 angles if appropriate
2) Kitchen, possibly 2 angles if photogenic
3) Living spaces as for kitchen
4) Master bedroom and usually some other bedrooms if appropriate
5) Outdoor living
6) Pool if applicable
7) Aerial photo if applicable or views as appropriate
8) Location lifestyle photos if applicable (used sparingly)
9) Laundry only if exceptionally well equipped
10) Entry voids/grand entries
11) Ensuite if applicable
12) Other features/rooms as required
13) I don't usually shoot garages or sheds
THREE HEALTHY PRAGMATIC MINDSETS / AFFIRMATIONS FOR THE SELLER:
A pragmatic mindset to help you accept the reality of what can be a lot of preparation and work, will help get to where you want to go.
1) "I want to sell and move, the quicker I get this over with the less work overall and therefore less stress. It is a predictable process."
2) "This is no longer going to be my home, it is the future buyer’s home soon."
3) "I need to think in terms of the difference between "showing-condition" from "living-condition". Short term inconvenience means a faster outcome and a higher price."
THE A, B, C, THREE BIG TICKET ITEMS:
These items are only going to be touched on very briefly, feel free to discuss personally in detail. All three however do in my opinion provide "good bang for your buck".
A) Carpet- there are good arguments for replacing worn or tired carpets not only for photos but for selling.
B) Paint- as above. Feature walls could be painted out or worn paint patched and entire rooms painted if required.
C) Hire furniture- I believe in almost all occasions (unless a land value property) excellent justifications and advantages in furnishing empty houses before photographing or showing. I have sold homes that had over 100 inspections "empty" and once nice rented furniture was placed in them sold to the next buyer who asked if they could buy the furniture, and paid the full price for the home.
THE TWELVE TOP GENERAL POINTS TO MAXIMISE BUYER VISUAL APPEAL:
What we are selling is the spaces, the usability of that space and the future lifestyle of your home to the future buyer. The most important thing we can do to improve the presentation and leave a favourable impression in your buyers minds, is to de-clutter.
- Take a step back and look at each room individually through a critical set of eyes, try to see what a buyer sees.
- De-clutter rooms which may be excessively furnished. They do not photograph well. Most rooms accumulate over the years more stuff than is necessary. The saying is "less is more". Busy rooms look smaller, and less appealing.
- Less clutter enables purchasers to envisage how their furniture and belongings will fit into your property. Ultimately we want buyers to see themselves in your home, as their new home.
- It is even worth considering renting some storage space if you do not have sufficient room in your garage.
- We will not photograph inside the garage, so that can be a good place to put excess items for the photo shoot. (Buyers will look in here though when the home is open so the storage unit not a bad option as a more general strategy for de-cluttering, or store items at a friend or family member house or even consider a garage sale in advance if time permits).
2) Detail / Clean
Clean always photographs best. If in doubt, best that it is immaculate, it will appeal to the buyers that view anyway. Clean never goes out of style.
- Cobwebs are a big no
- Everything in its place
- Electric cables and extensions hidden
- Dust should be wiped clear
- Wet areas should always look spotless
- Driveways degreased and immaculate
3) External General
- Remove all vehicles from driveways and do not park directly in front of the house
- Sulo bins/ garden bags out of site
- Remove door mats, floor mats, shoes and pet bowls
- Clean windows, dust free surfaces, vacuum or mop floors
- Open curtains and blinds and turn off ceiling fans
- Make sure all light bulbs are working
- Put away garden hoses, tools, toys and bikes
- If necessary consider high pressure hosing paving and drives, make sure pavers are free from weeds and ants.
Consider professional cleaners. Windows should be cleaned and sills clean
5) Lawns / Gardens
- Freshly mulched gardens always look best
- Weeds all gone
- Edges neat and trimmed
- Freshly mowed in last few days before shoot (not too short, green is best). As to lawns generally, green always photographs best. Consider a “shock” or lawn boost a couple of weeks before, lots of water (Within legal watering requirements).
- Consider repairing patches in lawns. If you have a dog, make sure all mess removed from paths and lawns
- Make sure all weeds absent for drives (Roundup sprayed on 10-14 days before hand should kill all weeds).
- Hedges and shrubs trimmed
- Remove photos, magnets, notes and papers from the refrigerator
- Clear bench tops of food, dish racks and cutting boards
- Sink empty, if necessary stack all in dishwasher
- Remove dish liquids, tea towels, soaps and plugs
- Put away garbage bins, brooms, mops and cleaning products
- Add a bowl of fresh fruit or a vase of fresh flowers
- Excess kitchen appliances on the bench tops could indicate a lack of storage and bench space. Clear them, ideally nothing other than a nice kettle should be on display, maybe a nice cookbook as well
- Remove electrical cables, particularly extension cables or risk the appearance of a lack of electrical power points
7) Bathrooms / Laundry
- Clear bench tops of toothbrushes, soaps, razors and plugs
- Remove shampoos, soaps and cleaning products from showers
- Remove rubbish bins, scales, bathmats and laundry baskets
- Close toilet lids, remove toilet brush and spare toilet rolls
- Put out fresh towels, folded and hung neatly on rails
- Make sure glass and mirrors are spotless remove all non-matching towels
- Remove any cat litter trays
8) The Study / Office
- Tidy up study desks
- Invoices/statements placed neatly away in drawers
- Book shelves neat and organised
- Make your beds with your best bed linen and thickest pillows
- Remove books, tissue boxes and jewellery from bedside tables
- Remove portable fans, heaters and rubbish bins
- Contain pets in the garage or out of sight
- Pet beds and food bowls out of site
Professional cleaners will give the carpets a great freshen up, and will make carpets smell clean too. (A side benefit)
12) Swimming Pool
- Remove pool toys, skimmers, pool blanket and Kreepy Krauly pool cleaners
- Pool clean/ skimmed, water sparkling
- Pool bottom cleaned
CHECKLIST FOR THE DAY OF THE PHOTO SHOOT:
1) Please have pets “managed” or absent for the photo shoot
2) Have floor plans available if we have them and if not already sent to agent in advance
3) Sweep and mop floors
4) Turn on all interior lights
5) Kreepy Krauly out of pool and site a few hours before shoot (we don't want water marks in photos).
6) Please remove pool cover if the pool is to be a feature
7) Have water blade and water features running
8) Pool fence if glass is clean
9) All cars hidden/out of front shot
10) No Sulo rubbish bins/kids toys in front of house shot
11) No garden hoses visible
12) All kitchen and bathroom benches cleared
13) Fridge magnets and all fridge paraphernalia gone
14) All light bulbs working (warm colour preferred)
15) Turn off TV and put remotes away
16) Remove all toys, portable fans, game consoles
17) Make all beds. Solid colour bed spreads photograph better than patterns
18) Tidy/hide all power leads/cables. All newspapers and most magazines hidden
19) Hide the portable gas heater if it is movable
20) Remove exercise bikes/treadmill and exercise gym equipment unless a purpose gym room
21) Lawns mowed Leaves raked up
22) Curtains open, let the home breathe
23) Decks or pavers cleaned/mopped/scrubbed
24) De-clutter books, games, tissue boxes
25) Remove all personal items. (Excessive photo collages or mantle pieces covered in personal photos)
26) Ensure bedside lamps are working
27) Remove posters/stickers from walls
28) Clear away all clothes
29) Remove washing from clothes line
30) Bikes hidden away
31) Kid’s bedrooms everything away as it should be
32) Kitchen sinks and benches cleared
I hope the above has been helpful and useful. I look forward to helping you get sold in the minimum possible reasonable timeframe with the best possible outcome.
31. October 2015 13:31
Blog . Real Estate
The big difference between property and any other type of investment is that you can actually touch it. Its bricks and mortar, not just numbers on a screen.
It’s also considered one of the more solid, less volatile forms of investment. Investors tend to like property for it’s:
- Potential capital growth (increase in value).
- Ongoing rental return.
- Tax benefits.
1. You don't need a big salary to get started- Lenders consider the potential rental income you’ll get from the property when calculating how much you can borrow. So property is a viable investment option for first time property buyers as well as existing property owners.
If you already own your own home, and have a reasonable amount of equity in it, you mightn’t need to raise any cash to start investing. Banks will lend usually you up to 70-80% against the security of residential property, which means that most Australians with a steady job and a little capital behind them can afford to buy investment properties. Many average income investors create substantial investment portfolios through the principles of investing in residential property.
Over the long run, property investors all over Australia have become wealthy in as little as ten years of being serious investors in property.
2. Proven wealth creation strategy- More millionaires have been created through property other forms of investment. The old saying, if you do what successful people do, you will become successful. The majority of wealthy people have used a real estate portfolio to increase their long term wealth.
3. Security- It's often said that residential real estate offers the security of 'bricks and mortar', but let's take a closer look at why I believe it's one of the safest and potentially most profitable investment markets in Australia.
Even in slump markets, houses do not devalue to zero and go broke. Some companies do however. Even allowing for the ups and downs of real estate values, and the recent global financial crisis, over the long run residential property in the major capital city residential markets has been steady growth and a solid investment.
Banks have always recognised property, and especially residential real estate, as an excellent security. The reason they'll lend you up to 80% of the value of your property is that they know property values have never fallen over the long-term. In fact, the entire Australian banking system is underpinned by the continual growth of residential property. The majority of residential homes are owner-occupiers and therefore the population will always need a home to live in. This ensures that there will never be a panic sell of the whole market like can occur in the stock market.
4. Growth of income- The rental income you receive from your investment property is usually indexed to inflation, and the value of the property. This allows you to borrow and gain the benefit of leverage by helping you pay the interest on your mortgage. This has historically outpaced inflation. Statistics show that the level of home ownership is slowly decreasing in Australia, in no small part due to increasing property prices. This will ensure pressure on demand for rental property as a place to live for many Australians.
5. Consistent capital growth- Over the past 25 years the value of the average property in all capital cities has doubled in value every eight to 10 years Property should be regarded as a medium to long term hold, and short term fluctuations in the market need to be placed in perspective. In the short-term prices can is much more uncertain and confused, and at times capital growth stops and even reverses, as we saw in the early 80s, the early 90s and in some areas in the most recent slump we experienced in 2008. Over the long run, property should still be a solid investment.
6. OPM- Other people’s money- Using OPM enables leverage and providing you can afford the repayments, and have some buffer in the form of your own equity, this is a normal and legitimate strategy for a wealth creation
7. You calling the shots- Property is a great investment because you make all the decisions and have direct control over the returns from your property. You can sell when you want, buy what you want, choose the tenant, renovate, fix, and add value, all sorts of things.
8. Tax advantages- The Australian Tax office (ATO) provides property investors a host of legitimate, legal tax advantages to owning an investment property.
9. Add value- There is lots of ways to add value to a property, from presentation, furnishing, subdividing if applicable, extending, the list is endless.
10. Realize equity without selling- Unlike most other investments, when your equity goes up you can go to the bank and borrow against the increased equity.
11. Most forgiving- Even if you bought the worst house at the top of the peak, in the worst street, if you hold long enough, it will eventually go up and value. History has proven that real estate is one of the best, if not the best most forgiving investment assets over the long run.
24. June 2015 14:02
Blog . Real Estate
Everyone says they have happy clients.
I learnt long ago in my career, by a famous man called Lee Woodward, the only thing that qualifies a real estate agent is "testimonials".
Not once listed either. After the sale. It only matters afterwards, what does the client think? Otherwise, how do you know if the listing was obtained by lying, or overpromising or by "smoke and mirrors"? (Common in real estate).
We started collecting them and have 100's today.
This is a small sample of some recent ones all dated. It reads like fan mail; please have a look for yourself. http://www.evolutionrealty.com.au/Testimonials.aspx
11. June 2015 13:13
Blog . Real Estate
It makes sense to move in a down market!
Did you know that if you are trading up, you are better off moving now rather than waiting for a market to recover? That is a fact. Let me show you why!
HIGHER PRICE EXAMPLE 1:
1) Your home is worth now $2M or 20% less than earlier on (say it was circa $2.5M before)= $500,000 less.
2) The one you want to buy is now $3M or 20% less than earlier on (say it was $3.75M before)= $750,000 less
3) The gap was $3.75M less $2.5M which is $1.25M
4) The gap is now $3M less $2M which is $1M
You are better off in this example by $250,000 selling in a down market if trading up. (20% of the difference).
LOWER PRICE EXAMPLE 2:
1) Your home is worth now $1M or 10% less than earlier on. (say it was circa $1.1M before)= $100,000 less.
2) The one you want to buy is now $1.5M or 10% less than earlier on (say it was $1.65M before)= $150,000 less
3) The gap was $1,650,000 less $1,100,000M which is $550,000.
4) The gap is now $1,500,000 less $1,000,000 which is $500,000.
You are better off in this example by $50,000 selling in a down market if trading up. (10% of the difference).
And that doesn't take any account for savings in stamp duty either.
So to discuss further how you can take advantage of the current market conditions, please call me or email me and I will be delighted to meet up. It is part of the service I provide to you as the local real estate expert.
As always, please feel free to give me a call if I can assist with any real estate matters. Thank you.
28. August 2014 17:04
Blog . Real Estate
Buying or Selling ‘Undercover’
Did you know that at any given time there are many great properties available for sale that sell before they’re advertised on the open market? Known as the ‘undercover sale’, this type of listing is becoming an increasingly popular choice by many sellers for a variety of reasons.
So if you’re a buyer who doesn’t have your details listed with an agent, you may never have the opportunity to know about a property that’s got everything you’re looking for.
WHY DO PEOPLE SELL 'UNDERCOVER'?
Some people prefer total privacy when it comes to selling their home, and this happens for a variety of reasons. Sometimes the timing to shout out to the world that they’re selling isn’t quite right. Examples include a personal family situation such as a separation, bankruptcy, business insolvency and issues with neighbours. Or perhaps they simply want to test the waters and only want to sell if their agent has the right qualified buyer that is prepared to pay their asking price.
If you can relate to a scenario like this, it’s good to know that it is possible to sell ‘undercover’ to avoid scrutiny from others and keep things private.
HOW DOES IT WORK?
Many agents secure successful sales for clients using the ‘undercover sale’ option. By cross matching the seller’s property with their buyer database, agents actively look for as many good matches as they can find. They then contact those buyers to let them know about the property they have listed silently. It can also work the other way around. Buyers approach the agent with their specific needs and the agent then assesses all listed (undercover and advertised) properties to find a suitable match. Either way, it’s a process of cross matching and connecting.
Please drop me a line if I can be of any assistance with your real estate matters.
8. April 2014 13:01
Blog . Real Estate
Please find below ten of the most important questions that should be considered when selling your home. Before you select an agent, it may be a good idea to have an agenda to help provide the meeting with structure and determine the most suitable agent for you. After all if you don’t have the best agent representing you, you can’t expect the best results.
1) REPUTATION: What do others say about the Agency and the sales consultant? What is the agent known for? Are they reachable? Would they cut corners to make a deal? Can you trust them with your house keys?
2) TRACK RECORD: How many sales have the sales agent made in the past 3 months, 6 months, 12 months and 5 years? You need your sales agent to be active in the current market. Sales made in years gone by do not qualify your agent to represent you in today’s market unless they are still highly active. Is the agent proven as a success over a sustained period?
3) CREDIBILITY: How many properties have the agent sold locally in the past 1-5 years? Where have they sold them? What type of properties? What do their clients say? Does the agent have written references?
4) SKILLS: What is the sales agent’s ‘Average Days on Market’? Can they close? How is their marketing skills and acumen?
5) APPROACH: How will buyers be found? How will the highest price be achieved? Does the agent understand the different types of buyers and how to achieve “Buyers highest price”.
6) AGENCY: Is the agency an active member of REIWA? What is the office/ agent personal conjunction policy?
7) SERVICE: How many written testimonials can the agent show dated in the past 12 months from satisfied clients? Do they show them on their website? (Check ours if you like).
8) RESOURCES: What are the internet capabilities of the agency? How many registered buyers does the agent have right now for the property? IS their website fast to load, attractive to buyers, easy to find?
9) RISK REVERSAL/ PEACE OF MIND: If you are not totally satisfied with the service, are you “stuck” with the agent or can you be released without penalty to appoint another agent?
10) PROFESSIONAL AND ONGOING DEVELOPMENT: What professional training seminars has the agent attended in the past 12 months and what ongoing professional development have they undertaken to keep abreast on industry leading trends and techniques?
6. April 2014 01:52
Blog . Real Estate
10. February 2014 16:17
Blog . Real Estate
I am in the business of being asked often, "What do you think is this property worth?"
It is interesting as I always see massive variation between different agents when I am competing on appraisals, and always see "lowball" offers coming in from supposed serious buyers, only to see properties sell for 10%-20% more a week later to another buyer.
I also see owners that are certain that their properties are worth a specific figure, yet we see some properties sit on the market years, proving that the market doesn’t share the same level of enthusiasm about the value as some owners.
So what is a property really worth?
We all know it is worth what a buyer is prepared to pay, and in this article I am not going to go through that lengthy discussion.
This (below) is a light hearted illustration of how, depending on whom you are, on what your own agenda may be, how we all look at the same property. The old saying that we all see with rose coloured glasses works both ways. Many buyers see things worse than they really are, and many sellers and allies of the seller, see things a lot better than they really are. Often the reality is somewhere in the middle.
Please enjoy this illustration.
5. July 2013 10:00
Blog . Real Estate
I am actively involved in appraising and talking about property values daily for the past 10 years.
a) We all know the value of a property is intensely personal and subjective.
b) We know that there must be an objective method for establishing a probable range for a property.
Over the years I have seen and heard of them all. To make my job easier, and to add value to my clients, and in response to a changed post global financial crisis (GFC) market in 2008, I have come up with a new tool evolved over that time, which in reality triangulates what I have always done, but in a graphic or visual way. (It started as a triangle, and then I added 3 more metrics).
The typical basis for the vast majority of my appraisals historically over the past 10 years
1) Current for sales (As a comparison of the competition)
2) Summation method (As a mathematical basis for determining possible value)
3) Sales evidence (True, real basis for value if recent and comparable)
Additional metrics added to reflect all typical factors. (These are often weighted less in true objective assessment, as they technically have little to no relationship to market value. They do assist in "framing" value perceptions).
4) Price paid plus costs (Indicates likely expectations)
5) Owners wishes (Can be influenced by need, or erroneous data)
6) Intuitive (Great agents can read, sense, feel, understand and anticipate the market)
Hence my new tool/graphic that I have created that I call "The 6 Keys to Determining Market Value". At the end of the day, the above is only ever a guide, and always the true measure of market value is what a willing buyer is prepared and can afford to pay for at any given time.
For a full explanation of the above, a copy of the graphic to be emailed you, or an updated appraisal of your property, please feel free to give me a call or email.