Property investors and home owners alike generally have a strong interest in the value of the property they are holding. Apart from it being a topic of passionate national interest, the value of a property will determine whether you choose to buy, hold, sell, or reinvest.
The lenders employ professional valuers to price properties so they know how much they can safely lend. Hence these valuations as a rule err on the side of conservatism.
The Real Estate industry in QLD is one of the most tightly monitored in the nation there are a strict set of rules agents must follow when listing a property for sale. The seller has to sign a document called a 22a, authorizing the agent to sell the property. The agents under law have to attach what is called a CMA to the form – a comparative market analysis. The CMA is proof of the research undertaken by the agent to put the correct price on the home. It exists for the protection of the seller – who may be unrealistic about the property’s value, it also prevents agents from overpricing properties unrealistically to ‘buy the listing’. The CMA report should include a list of similar properties sold recently in the area, and the price range. It can get tricky at times because there are intangible factors in determining a property value as well as the local sales history.
The land value is a large part of determining the value of a property – often driven by location and crucial in the criteria of savvy investors. Fixtures, fittings, bathrooms, number of bedrooms and capacity of the garage also determine a valuation report.
There are a few things you can do economically to increase the value of the property look at the overall presentation and appearance of the property from a buyers perspective. Declutter, clear rubbish from the gardens, splash on a coat of paint and visit the auctions for some bargain tap fittings – they can all make a difference in the bigger scheme of things.
If you would like some handy hints for adding value, or you are thinking of listing your home for sale, call us for an obligation free market appraisal. We have a shortage of properties in the 500 000 to 1 million dollar price bracket and some very interested buyers for beachside and Hinterland property.
Till next week
Olivier miller