I am actively involved in appraising and talking about property values daily for the past 10 years.
a) We all know the value of a property is intensely personal and subjective.
b) We know that there must be an objective method for establishing a probable range for a property.
Over the years I have seen and heard of them all. To make my job easier, and to add value to my clients, and in response to a changed post global financial crisis (GFC) market in 2008, I have come up with a new tool evolved over that time, which in reality triangulates what I have always done, but in a graphic or visual way. (It started as a triangle, and then I added 3 more metrics).
The typical basis for the vast majority of my appraisals historically over the past 10 years
1) Current for sales (As a comparison of the competition)
2) Summation method (As a mathematical basis for determining possible value)
3) Sales evidence (True, real basis for value if recent and comparable)
Additional metrics added to reflect all typical factors. (These are often weighted less in true objective assessment, as they technically have little to no relationship to market value. They do assist in “framing” value perceptions).
4) Price paid plus costs (Indicates likely expectations)
5) Owners wishes (Can be influenced by need, or erroneous data)
6) Intuitive (Great agents can read, sense, feel, understand and anticipate the market)
Hence my new tool/graphic that I have created that I call “The 6 Keys to Determining Market Value”. At the end of the day, the above is only ever a guide, and always the true measure of market value is what a willing buyer is prepared and can afford to pay for at any given time.
For a full explanation of the above, a copy of the graphic to be emailed you, or an updated appraisal of your property, please feel free to give me a call or email.