The basic, primary method of assessment is called the Market Approach and it simply relies on comparing your property to other
properties that have sold in your area recently.
By use of databases, listing portals, and their local agent
contacts, a valuer will gather three to six property sales that are nearby,
recent, and similar to your home and research the attributes of those
properties.
The valuer’s skill through their experience, art, and
science is determined by how much in dollar terms your property is better or
worse than the comparables.
The house next door sold last week for $700,000, but is
smaller, older, and doesn’t have a pool.
Yours is worth a certain amount more than that.
An identical house across the road sold for $825,000 but on
a bigger block with better views.
Yours is worthless.
This progressive comparison across a collection of
reasonable sales soon provides a tight range of value that gives a fair
indication of what you should achieve.
There are other approaches to this valuation that help
double-check the figure, but using comparable sales is considered the
preeminent approach.
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RealRenta also has a free vision, so why not check it out.
Jason Gwerder
Tuesday, 8 April 2025
