In This Week’s How’s The Market | Edition 169
Why Property Valuation Is More Art Than Science
How I Work Out True Value & Avoid Overpaying
Glen Iris Grandeur at Its Finest
How do you know what a property is really worth?
Property valuation is one of the trickiest parts of buying and it’s often more art than science.
In this episode, I break down what I look for when valuing a property, why getting it right matters, and the exact approach I use to work out true value.
1. Why Valuing Properties Is So Difficult
Property value isn’t just about the numbers, it’s about the people, emotions and circumstances that can turn one property into a price no comparable sale could predict.
2. Ignore The Price Guide
I start by ignoring the advertised range and instead analyse the local market by studying recent nearby sales, the most comparable properties, and key factors like bedrooms, bathrooms, car spaces, land and house size, orientation, zoning and overlays to build a high-level picture of true value.
3. Analyse Your Property
Our in-depth property report helps clients uncover the key positives and shortcomings of a property, compare it accurately against comparable sales, and understand every layer of the analysis when inspecting homes or assessing value.
4. Understand Why The Comparables Are Different
Finding comparable sales is easy; understanding why each one sold for what it did and adjusting for differences like location, land, condition, layout and features is where property valuation becomes more art than science.
5. Location Within The Suburb Matters
Two properties just 500 metres apart can have completely different values because factors like location, streetscape, schools, transport, main roads and orientation matter far more than a suburb’s median price when determining what a specific property is truly worth.
6. Work Out What The Building Is Actually Worth To You
When comparing renovated and unrenovated properties, don’t mistake the cost of the renovation for added value. Focus on what money can’t easily change: the land, location, orientation, floor plan and street.
7. Don’t Confuse What You Can Afford With What It’s Worth
Your budget is not the property’s value, know what the property is worth and set your limit before the auction, rather than letting competition convince you to pay more.
8. Come Up With A Range, Not A Perfect Number
You can’t put an exact dollar value on most properties, but understanding the right value range gives you the confidence to make strategic decisions and negotiate based on evidence not emotion or an agent’s opinion.
So What Is A Property Actually Worth?
It’s not about the price guide, it’s about the evidence, the market and understanding what a property is truly worth so you can buy with confidence, not emotion.
Want to know exactly how I approach valuation with my clients?
The Wow Factor!
Timeless Glen Iris Grandeur Meets Modern Luxury
Why it WOWs:
- Iconic 1920s façade surrounded by lush gardens
- Luxurious master suite with dressing room
- Exquisite Elba Marble and premium Miele kitchen
- Soaring ceilings with striking oak and steel-framed glass
- Seamless indoor-outdoor entertaining spaces
- Secure remote-gated parking for three cars
Price guide: $3,500,000 – $3,700,000
Final Thoughts
True value isn’t about paying the lowest price, it’s about knowing what a property is genuinely worth and having the confidence to walk away when the numbers don’t stack up.
If you would like to see if the numbers could work for you, feel free to book a call, and we can discuss whether we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at [email protected]
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
