Property evaluation requires a direct statistics plan and ideation. It is necessary to work out the current data figures and make an estimation about the future data figures.
It is necessary to follow the data trends in order to understand the manner in which the property shall be evaluated.
Property evaluation in Australia is done based on two factors. The first one is based upon checking the sale of similar property in recent areas.
This way the property is looked at in this method is by making sure that the trend is followed about the property sale that has already been made in the past with the same criteria as other properties in the area.
For the second case, there is an overall estimation. The data is kept into figures and an overall estimation is necessary to be made about the various facilities involved with the property.
An evaluation of the land, building, and other amenities is needed to be made.
Thus, property evaluation can be divided into two groups based on the nature of evaluation:
1. Direct Comparison Method
Under this method, the property is decided based upon the sale of similar property in recent times. This is a common method used by the valuer.
Here the sold property is used as a comparison guide for valuation. The adjustments are settled and sorted to if there are any material differences between the properties.
This is a comparatively simpler method and is widely used. Because of this method, the valuers are enabled to make an overall statistical comparison for the valuation of the property.
Moreover, they can also decide upon the amenities and the overall value that it brings in for the property. Thus, the direct comparison method is the one that is widely used for bringing effective results.
2. Summation Method
In this method, the valuation of the land is determined. The value of the land is considered keeping in mind the size, shape, location, and topography. The surrounding infrastructure and the environment are also taken into consideration.
The later added values are the ones that require the changes. The architectural features, the number of rooms, etc. are the extra added features. These features are to be added later.
This is a more thorough method. Under this method, the valuation is done from primary aspects.
Right from the calculation of the statistics about the land and its surrounding features, the summation is done.
The valuation is done keeping in mind the amenities that are brought in by the property. There is no space and scope for comparison under this method.
Under this method, the prospects are not compared from the similar estate but a basic and fundamental data collection and analysis is done on the property valuation of the land and the amenities.
At the beginning of the house inspection, an internal and external property valuation is done. It may take 48 hours for the standard property evaluation to be done.
For this, the overall data about the property is to be gathered which is why it is more time-consuming. Though the price differentiates based on the property because of the architectural style and all other factors included.
This is a more full-proof and grounded method that enhances the way the system is sort and relies on better strong and grounded aspects.
Necessities for Both the Process
Both the process requires a genuine valuer who is willing to take into account both the methods and choose one which is more effective for the land.
There are lists of certain documents that are needed by the valuer. These are as follows:
- Contract of sale– it mentions all the financial data and amenities for the prospect.
- Certificate of title– the title of certification that determines the ownership of the estate.
- Council rates– the notice about the council rates on the state
- Building plans– In the case of a new building, new plans are required for the blueprint.
There are certain other documents over and above this that are necessary for the valuer.
This includes a list of work undertaken, owner’s estimate of market value, local paper and newspaper sales result, market appraisal for the agent.
Thus, in order to understand the kind of valuation that is required by your property, it is necessary to get a valuer who knows the market thoroughly.
Make sure to be involved in the process to know the entire evaluation process. Be present in knowing the rating and data aspects as well. This helps as a serving process for pivotal reasons.