Agents looking to value a property in 2012 should pay particular attention to excessive home improvements, location quirks and flood prone areas, as these three factors were noted to have the largest impact on property values in 2011, a national valuing firm has claimed.
“Some properties have had considerable amounts spent on improvements that, if not attractive to others, may provide no added value,” Propell National Valuers chief executive Brad Mead said.
“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.”
Particular location issues also had significant on property valuations, even if the property itself was comparable to others in the suburb.
“Bus stops five houses along are great, but a bus stop out the front is not ideal," Mr Mead said.
“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,” he added.
Valuers also took into account the price bands properties fell within.
“If the property is typical of what sells in that suburb, then it is likely to experience good demand and will sell,” Mr Mead said.
In what may appear obvious to most agents, heightened concern regarding flood prone houses affected valuations more than ever before, particularly in light of the Queensland floods earlier this year.
“It comes as no surprise that valuers need to consider flood prone properties at greater length than they did twelve months ago,’ Mr Mead said.