15 Quick Tips For Property Valuations.

Do it they’ll get a report done  on property X in Blacktown for example  and I’ll get a report back from CoreLogic saying this is the market this  is the area this is the house here’s all the attributes about it and we reckon  that it’s worth between six hundred and ninety thousand dollars and eight thousand thousand dollars but we reckon  in pretty good confidence that it’s worth seven seventy and it gets all printed out and they get like okay well there must be worth seven seventy the  question I get asked a lot is how do you actually work out that it is that seven seventy and that level of confidence is that drawing on the hedonic index would be part of it but how do you  get that number and should you rely on that number.

So there’s a couple ways to answer that so how do we get the number first well it’s it’s through a whole series of different mathematical models  right so a big part of our business is automated valuations essentially using an algorithm to estimate the value of a property so what are the big that most um suppose a prolific products with with  the banking sector would be an automated valuation which they will then use to either as a fast track that the mortgage application process if you’re a low risk applicant for a mortgage getting a valuation done on the property should be  pretty straightforward particularly.

If it’s a if it’s an it was a normal property so by a normal property I mean it’s it’s not unique it’s not on there on the Harbourfront point pi but for example yeah okay how do we determine the accuracy of those valuations well it  comes back to data availability and I suppose that the complexity of the property as well so I’ll use a may be a worst case example so the Harbourfront property a point www.sydneypropertyvaluations.net.au PI but really hard for an algorithm to value it’s just unique there’s not a lot of surrounding sales  around it trying to assess the value in the premium of the harbour frontage and the view and exclusivity is very hard.

Generally you need a human to value a property like that but if you’re buying a property add in say the hills district in a new housing estate and all the  properties are very similar we know how many attributes or how many bedrooms and bathrooms and land size everything’s very available and everything is very standardized really easy for an algorithm to to value a property like that so there’s plenty of sales evidence plenty of turnover and there’s a lot of  consistency amongst the products so then based on all those things we get what’s called a forecast standard deviation it’s essentially a level of volatility in the reading and if that standard deviation score is very low.