There are two main methods that residential property valuers
employ when determining what a place is worth.
- The
direct comparison method
This is the first and primary approach, which involves the
analysis of recent sales of comparable properties in the local area over the
past six or so months and seeing how those sales compare to your property.
By using sales evidence in close proximity to your home, the
valuer is able to account for the way buyers view important locational factors
as well.
This is where they sum together the added value of the land
and its improvements, including the house and other ancillaries like a pool or
landscaping.
It requires skills such as allowing for depreciation due to wear and tear or economic factors, working knowledge of construction costs, and assessing overcapitalisation.
No matter what the method, here are the three things that
property valuers look for.
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Jason Gwerder
Thursday, 17 April 2025
