Understanding Property Values - EP45
Do you know the key factors that contribute to a property’s value? What can make it gain or lose value? And do you know how a property is valued, and by whom? In this episode of Real Estate Matters, Toni tackles all of these questions so that whether you’re a buyer or a seller, you can better understand what makes up property values. Toni first explains the types of valuations you might see for a property. A real estate agent can give you a market appraisal, but mortgage companies will require you to have a sworn valuation. Toni explains the difference and why it’s important. There’s a difference between the value of land and the value of any improvements (or what’s built above the land). Both elements go into the value of a property, and they can both change independently. Toni looks at the factors that can change the values of both land and houses, and how they interact. She also provides some examples where that dynamic affected property prices for her clients in unexpected ways. Toni then gives us some advice about how to look at properties with a critical eye when it comes to their values. She gives us some tips about what to look for, and what to ignore, when you’re considering a property, and how you might be able to expect that property’s value to change over time. For instance, she looks especially at the different considerations for apartments and period properties. Finally, Toni sums up by recapping the main points from this episode’s discussion. Topics Covered The difference between an agent’s market appraisal and a valuer’s sworn valuation Why the land in a property holds most of the value How to get a feel for the value of land compared to an average in that suburb How both land and house values change with time, on average How apartments and period houses can be different from other houses The relationship of land value to scarcity Important factors that can affect the value of land The factors that don’t materially affect the value of land Learn More About Property Values For property advice in Victoria, please visit the website of the Real Estate Institute of Victoria. Domain.com.au and RealEstate.com.au both show sales data for “comparable properties” at the bottom of their listings. This can be a great resource for learning how they define comparable properties, and what the similarities are. Toni welcomes questions and comments! Feel free to email her at firstname.lastname@example.org!