Got a question for the trio?
In today’s ep of the Property Trio podcast, we’re delving into the intriguing world of property appraisals, where art meets science!.
Have you ever wondered how to determine the right premium or discount when something noteworthy impacts a property positively or negatively?
Well, that’s exactly what we explore!
First up, we dive into the positive attributes that can enhance property value.
- Notable designers or architects – Cate even shares a reference to Eltham’s Alistair Knox!
- New works/extensions/renovations – adding value with a touch of modernity!
- Ideal floorplans – we’ll be using charming cottages as our prime example!
- Great views – because who doesn’t love a stunning vista?
- Train station within 200-500m – convenience matters!
- Ultra wide block – a developer’s dream!
- North-facing rear – basking in natural sunlight!
- Attractive zoning – growth zone vs. standard, residential zoning!
- Heritage significance – history makes a property special!
Next, we unravel the detractors that can lead to discounting
- Properties in serious need of repair – a fixer-upper might need some extra love!
- South-facing rear – less sun, less fun?
- Challenging zoning – it can be a hurdle!
The Trio also discuss the lending challenges that buyers may face with these negative attributes, such as tight internal floor areas and tricky planning zones.
- Main roads
- High voltage power lines
- Train lines
- Ugly surrounds (ie. industrial buildings)
- Tough overlays (ie flood, bushfire)
- Bank lending policy issues, ie. floor area
- Significant strata fees or high special levies
- Brick cracking
- Obvious problematic neighbours
- Flight paths
- Development sites next door/over the back fence that could threaten privacy and natural light
- Restrictive covenants
- Houses with sordid histories
- Compulsory acquisition possibility
- Easements in awkward spots
But wait, there’s more! Mike shares different methods of property valuation, from recent comparable sales analyses to the summation method, while Cate emphasises the importance of comparing apples with apples when evaluating attributes.
Ever wondered about Quantity Surveyor due diligence vs. Buyers Agent due diligence? Mike addresses this and considers factors like poor quality soil, flood/fire overlays, and restrictive covenants in his reports.
And now, for the highlight of the episode: Cate’s surprising answer to how buyers can apply a discount or premium when dealing with these property impacts!
Last but not least, Cate shares how buyers should approach compromised properties and warns about the risks of selecting bad quality off-markets. Pete’s famous bad bag of apples quote couldn’t be more relevant!
Mike Mortlock’s gold nugget: Mike is struck by the exhaustive list that Cate shared in this episode and he implores buyers to catalogue the list each time they check out a property.
Cate Bakos’s gold nugget: “When you buy a bargain, you sell a bargain.”