Property Valuation Brisbane Case Study
Client – Undisclosed
Valuation – Residential Property Valuation
Location –Tanah Merah
Purpose – Market Value for Purchase Purposes
Assets – Not Applicable – Just the property itself
Comment – The client engaged The Asset Valuations Group to prepare a full valuation report, with an opinion of Market Value for Purchase Price Purposes. Likewise, we have completed a Property Valuation Brisbane Case Study.
Situation Analysis
A client of ours asked us as independent valuers, to prepare an independent valuation report on a residential property situated in Tanah Merah.
At the time, our client was dealing with a real estate agent, who had their own best interests at heart, they wanted to get the highest possible price, rather than assess the Market Value. As a result, the price the real estate agent was pushing for was in the low six hundred thousands.
As this is a large company, our client had decided to ensure their due diligence and engage with one of our valuers to provide them with a full valuation report. Moreover, they were not confident in the asking price.
Our Valuers met with the client, and real estate agent at the premises. In addition, they photographed the entire property, and measured out the improvements for accuracy, when determining the value of improvements.
In the background the real estate agent was trying to influence the false value of the property, and the false perception of the area.
As this was a tricky report, the comparable sales were not demonstrating prices of what they were asking, they were much less.
Valuation Analysis
- The asking price of the property was in the low six hundreds, which was excessive;
- The selling confidence in the area was low;
- $595,000 was the Fair Market Value; and
- Although the house and the scenery was great, it was not indicative of the asking price.
Our recommendation was to offer $595,000.00, and not go through with the asking price.
The client could not negotiate with the real estate agent, and the sale ended up falling through.
Although, for another $15,000 plus, they would have bought the house, it was the fact that it was an older type home, and it would take a mini market boom for it to appreciate. As a result, we saved the client $15,000 plus, and a long-term hassle and prevented the client from paying above the market value.
Our Recommendation
- Before you decide to purchase a property do the wise thing, always seek expert advice, and do your due diligence as it can save you money and prevent an expensive mistake.
- Do not let an individual persuade you about a price, buy with your head and not with your heart. Likewise, a property is a long-term investment which you will be attached to for many years.
- Work with someone who seeks your best interest, whether it be a real estate agent, valuer or both.
Our property valuers always work with the client, and give an unbiased opinion. Additionally, we hope you have enjoyed our Property Valuation Brisbane Case Study
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