I obtain details of the most recent and comparable sales of properties in the locality. I start with a long list and prioritise to the best 6 or so comparables. I analyse them by deducting values for chattels, land, out buildings and other site improvements, in order to arrive at a net sale price for the dwelling only. I then divide that by the floor area to arrive at a net rate per square metre for the dwelling that has sold. I do that for each sold property.
I then compare each sale property net rate with the property that I am appraising, adjusting for such things as location, views, section size and desirability, construction materials, quality, condition, layout, size, character, X factor appeal etc and from that analysis I derive a net rate to use for the subject property.
I multiply the floor area by the adopted net rate to produce a value for the house. I then add on values for the other site improvements, out buildings, land and chattels to arrive at a value for the tot I al property. I then “stand back” and check whether it lines up with my “gut feel” based on a capital value comparison approach. With this, I use my experience of 34 years in the property industry as a Licensed Real Estate Agent, Registered Valuer and Property Auctioneer. Give me a call for a free, no obligation market appraisal, presentation report and marketing recommendation.
Kind regards
Michael
Good to see we’re on the same page re appraisal calculations –
http://unconditional.co.nz/sunny-nelson/2009/10/29/danger-with-cv-figure-in-nz/
…I’m plenty sure that many out there do not construct such a detailed opinion, and therefore really don’t have the evidence, if asked, to back up their appraisal range.
As well as the appraisal range …… perhaps in the future, appraisers may just have to show how they got to that figure too?
If a vendor could see this data, then they too can educate themselves, and not be caught up as in the unfortunate situation where their listing was “brought.” (as in buying the listing)