Category: Uncategorized

4. “More bedrooms = more value”

Often property owners make the mistake of believing their property is worth more than another in their area because it has more bedrooms.

Thirty years ago this certainly was a consideration when home design was less sophisticated and family sizes on average were larger. In today’s market, property owners often choose to convert a spare bedroom into a study or office, home theatre or storage room, and there’s a trend to convert garages to bedrooms to accommodate older teens and adult children with personal space away from the main living area.

When comparing two properties, especially units, total floor area may be a better indication of value rather than the number of bedrooms in a dwelling. Valuers also consider location-based factors such as street appeal, street access and views when comparing properties.

3. “Valuers don’t spend enough time in a home to give a solid valuation”

Before visiting a property a valuer will undertake extensive background research on your local market. Valuers have access to software and data which allows them to check recent sales data in your area and will have knowledge of comparable properties.

When the valuer arrives at your property they will have a very specific checklist of items they are looking for and may only require 20-30 minutes at your property to compile this information. The additional research the valuer has undertaken should be evident in the valuation report they provide to you.

2. “Bank valuations are always conservative”

A bank will engage an external valuer to provide an unbiased valuation on your property. Valuers must act independently and should not be influenced by the party seeking the valuation or concerned with the reasons why a valuation has been requested.

A valuation report can be challenged in court and must be backed by comparative market data, therefore a valuer must be able to justify their valuation figure by providing evidence of comparable sales in an area. In compiling a valuation report, valuers must adhere to a strict process heavily reliant on factual data and appropriate methodology.

1. “Swimming pools add no value”

This is a generalisation which cannot be applied to all properties.  In some areas there may be evidence that buyers are prepared to pay more for a pool, however in other areas this may not be the case.

Prestige homes or suburbs catering to families may see the added value in pools, whereas inner city or coastal properties may not.

Consider the potential target market for your property. Pools can provide an opportunity for leisure with family and friends and encourage a healthy and active lifestyle – a feature that will attract a certain market. Just keep it well maintained and landscaped to maximise value.

10. Long listing can equal big savings

An overconfident vendor can be their own worst enemy. In most markets, appropriately priced properties sell within a reasonable time frame. When markets are rising, sellers may confidently list there investment at a price above the local market and wait for it to catch up, but when things stagnate these properties will sit and if the seller isn’t flexible, they will burn off potential deals.

If you feel a property is overpriced, keep an eye on it. If the market isn’t particularly hot and you start seeing the home appear week after week with no joy, particularly if the list price keeps reducing, try your hand. The frustrated home owner may just feel the need to get the darned thing over and done with.

9. Work the conditions

The fewer conditions you have in a contract, the more the vendor’s going to favour that contract. Don’t put yourself at risk but if there are instances where you can safely take out the finance clause, waive the cooling off period or forget about building and pest inspections then you could well find your self a step ahead of the competition.

With this approach it can pay to ask the agent what the buyer wants in the contract. If you are flexible with your requirements and cater to theirs, it might swing the deal in your favour.

8. Stick with the basics

Bargains aren’t bargains if things go sour easily. Avoid main roads and adjacent rail lines. These things don’t sell in a soft market.

7. Buck the market trend

Noticed that things have slowed in the area? Is everyone looking a little sheepish about property despite all the fundamentals being in place for plenty of positives? Are there fewer people at the auctions with even fewer competitive bidders? Now is the time to put your hand in your pocket.

6. Look for growth fundamentals

He who hesitates is lost when it comes to areas with all the elements of a future upside. Are there major industries or transport routes likely to boost a suburb’s profile? Perhaps a new bridge will drop potential tenants right at the door of a workplace or perhaps the local university is expanding its overseas student programme.

5. Look for the angles

Bargains are not always obvious and you must dust off a little dirt to find the gold seam. Try thinking outside everyone else’s box to see if you can make a go of a property possibility. It is also worth considering whether a property holds a value to you over and above the local market. Perhaps by purchasing your neighbor’s home you may suddenly find yourself with a potential development site ripe for rezoning to units – all for not much more than the cost of a standard residential dwelling.