The top issues impacting investor property valuations in 2011 have been revealed by a leading national valuer firm.
The insights will help as a guide for property owners and investors, The top factors affecting property valuations in 2011 have been revealedaccording to Propell National Valuers CEO Bart Mead.
The list suggested that the rising and falling trends of time on the market, as well as the availability of similar properties in the area to compare prices with were top factors.
Renovations and alterations to properties only potentially had an impact.
“Some properties have had considerable amounts spent on “improvements” that, if not attractive to others, may provide no added value.
“Owners have a personal attachment to the expenditure on improvements and can find it difficult to accept if others don’t value it as highly,” Mr Mead said.
Investors may want to demolish and replace certain properties, in which case renovations may be unimportant.
“If the property is typical of what sells in that suburb, then it is likely to experience good demand and will sell,” he said.
Flood prone houses may be a concern, and therefore affect valuations more than has been seen previously.
The supply of the market, presentation of the property and whether or not the dwelling falls within a popular price bracket were also important factors.
Unusual features may alter the value, but may not add anything at all if not valued by buyers.
Similarly, location to amenities and the neighbourhood was listed as a consideration.
Location issues “Bus stops five houses along are great, but a bus stop out the front is not ideal. Poor neighbouring housing and facing a road junction, where car lights shine on the property at night, detracts value whereas cul-de-sacs imply safety and are preferred,” Mr Mead said.
Asking prices compared to sales prices could potentially skew the data.