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Ever wonder how property is valued? Why you're being asked to pay the price you pay?

When considering buying a new or pre-owned home, it’s in your best interest to have a knowledgeable professional on your side to evaluate the condition of the property.

Sellers usually get an number of different agents to appraise the value of their property prior to putting it on the market and the methods used can vary widely.

Here's some idea of how a property can be valued. Read More

1. Taking a Guess	2. Secure a Listing	3. Low Balling
Yes it does happen	Agents do this to secure a listing with the idea of working on the vendor over a period of time to get a price reduction.	An agent prices a property as low as he thinks he can get away with. The lower the property is priced, the quicker the sale
4. Direct Comparison	5. CIV (capital improved value) on Rates Notice	6. CPI Method
Agents write down a number of recent sales in the local area and then physically drive around and look at the exterior of each of those properties which are then compared to the property in question.	Generally used by inexperienced agents and is not a very good indicator as many properties are sold either way above or way below the nominated figure.	This method relates to the median price movement. Agents look at the date a property was purchased and the price paid and then adds or subtracts whatever increases have occurred to the median house prices in the area since that time.
7. Summation Method	8. Capitalisation Method	9. Turner Method
The summation method is really just putting a value on the different parts that make up a property and adding them up.	This method determines the value of commercial and industrial properties in conjunction with the summation and direct comparison methods.	This method determines the value of a vacant piece of land which is to be used for development of building blocks or units.

So what do you as a buyer make of all this? By doing your own research you can become quite the expert.

But your Inspection Professional of choice should make it a top priority to share as much information as possible.

So remember to ask are they inspecting to the Inspex Standard!