I have started to compare properties and having troubles on what I am supposed to do. Ok so I picked 2 properties to practice, they are in opposite streets both are 2 story houses with some minor differences these are the differences:
First House Second house
Sq- unknown 258m2 (approx)
Beds- 3 3
B/r- 2 2
Price 680,000 – $730,000 649,000
AirCon- Yes-3 No
Garage- Yes-1 Yes-1Now apprently I am supposed to do some subtracting and stuff I don’t get what I am exactly supposed to do with this information. Do I for example take the cost of the 3 air-conditioners in the first house and deduct the market price of it by the cost of 3 air-conditioners? Making the second house worth a bit less since it has no air conditioning which adds value to the house?
What other factors should I include in the study? Thanks.
EDIT: Sorry for the bad formatting the website is not allowing me to split the differences.
This is not how you compare properties value. to compare has less to do with the air con and more to do with land size and the build style, the perceived value etc
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
Ok thanks, do you know where I can find a good guide for this?
do a stack of google searchs for pdf books to read, read Steve mcknights book, watch videos, go look for yourself and start putting energy into finding what you want
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
I’ve read his books but can’t find anything on comparative market analysis. There’s no clear guide I guess I will have to figure it out, which is all good.
Ok so you could do a real estate course,online they aren’t overly expensive.
But a Cma is a process you should be able to work out for yourself.
Study
-past sales in area that are similar (sold)
-what’s on market
-sale frequency
-then look at what your property has to offer etcInstead of looking at two properties you look at one. Then study that one against the market. Stacking two against each other dosnt do a lot. Stacking one against the market does. It let’s you understand how it stacks.
Does this help?
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
Yeah it does thanks mate.
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