澳洲Australia property Method in valuing a property | Sydney
在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
I'm trying to value a property to find its real market value with a view to make an offer but the problem is that there is not alot of comparable sales in the area. Any figure I generate will be based on a small sample size.
What if i go back in further in time to generate a larger sample of sales?
There may, however, be a problem using the raw house prices 3 months or more back due to changes in value over time. To account for that, I use the median house price at that particular month of sale and find the percentage increase from that particular month to the current month. I then multiple the percentage increase from that particular month with the original sale price to obtain its relative current value. I then can use its relative current value as a comparative sale in the area.
For example, a similiar townhouse was sold 2 years ago at 350,000. The median prices then were 450,000 in the area. The current median price is 900,000 for simplicity's sake in the area. The percentage increase is 100% or double. So I double the price of the similiar townhouse sold 2 years ago to obtain its market value today. I then use this market value as a comparable sale.
As the median prices in the area fluctate alot due to not many sales, would using the local LGA median price to find percentage increases affect the validity of this method?