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Appraisal from a local real estate agent
Mei Mei Family Trust has a vacant block that is in a remote location at the end of a dirt road. The block is quite rocky and covered in heavy scrub with no power or water connected.
Mei Mei has provided a new value of $220,000. The property is recorded on the Real Estate and Business Summary (REBS) screen as VAL (desktop/kerbside valuation (completed by a contracted third party valuation provider)) of $235,000.
An email has also been provided from a local real estate agent who estimates the property value at $220,000 if it were to go to market. |
Reasonable
The new estimate provided is within 10% of the current valuation.
Local real estate agents are in touch with the local property market and recent sales. Written confirmation of the property can show why a price may be lower in a set street, neighbourhood or suburb, and recent sales to support a lower property price.
Not all real estate appraisals will be acceptable. Any new customer estimate still needs to be within the required 10% margin to be accepted. |
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Online research
Brian and Christine have provided a new value for their private company’s hobby farm as $650,000. The property is recorded on REBS as VAL $749,825.
Research indicates the estimated value of the property ranges from $570,000 (low range) to $1.05m (high range) with an estimated value of $807,000. |
Not reasonable
The new estimate provided is not within 10% of the current valuation.
Research lists the property features (land size, number of bathrooms and bedrooms) that have been taken into account to provide the estimated value. It also indicates the property is in good condition and close to the waterfront. Therefore, the estimated value of $807,000 appears reasonable.
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Rates notice
Dave and Kath have provided a Private Trust form (MOD PT) for their trust owned rental property, with a new value for the property as $450,000. The property is recorded on REBS as VAL $668,000.
The rates notice provided shows a rates valuation of $450,000. |
Not reasonable
The new estimate provided is not within 10% of the current valuation.
Property values shown on council rates notices are for calculating council rate, fire and ambulance services or other taxes. They do not always indicate the current market value of a property.
Customers will often put the value from the rates notice as the estimated property value on the MOD PT. It is unlikely the customer would be satisfied with this value as the sale price if they were to sell the property.
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