David
Butler
Property Valuations Melbourne
WHAT I DO, AND HOW I DO IT!
"Location, Timing, and Price".
Yes, for sure, Location will always be the first factor to consider. This relates to how suitable a block of land is to the designated purpose, and how desirable the market considers that block to be. That is true no matter whether the purpose is residential, commercial, or any of the other many purposes to which land may be put.
But what about Timing? This is about knowing where/when in the property cycle (for that particular class of property) the property currently is placed.
And Price.
From time to time, my clients ask
me to explain how I arrive at a
value for a property ... to explain
my methodology.
So on this page, you will find a
brief explanation of the primary
methods that I employ, in the
valuation of the most common
classes of real estate in Australia.
Please remember that it takes a 3
year Bachelor Degree to qualify as
a valuer! So what follows is just a
glimpse of the complexity
involved in providing you with an
accurate property valuation.
-
Residential Property.
The primary method
is known as:
"Direct Comparison":
If the property to be valued is a
house or a unit, I search my
database for recent sales in the
same suburb.
(For a house, I will then look for
sales of similar size land).
Next, I compare the locations.
Then I will check to see the
numbers of bedrooms, and
bathrooms.
Of course, construction types,
age and condition are also
important factors.
-
Commercial Property.
The primary method
is known as:
"Capitalisation of
Nett Rental":
In this class of property, the use is
often office, warehouse, factory
or retail shop.
Whether or not the property is
owner-occupied, leased to a
tenant, or vacant, I start by
determining the market rent on a
per square metre per annum
basis.
I then make various adjustments
to my calculations, to take into
account the prevailing
circumstances.
After determining the percentage
return that the market expects for
such a property, I am able to
arrive at its market value.
-
Special Use Property.
The primary method
might (only might!) be:
"Summation":
For example, over the years I
have valued a number of
churches.
Generally, I have found it best to
approach these valuations by
first determining the value of the
land as if it was vacant, (without
any buildings or other ground
improvements).
Next, having measured the building, I determine the added
value after depreciation.
Having independently
established the values of the
land and the improvements, I am
then in a position to arrive at a
value for the property as a
whole.
WHO I AM
Back in the 1980's, I worked for some of the large real estate companies, including Knight Frank, and Colliers. But my personality and temperament is best suited to being my own boss, so before long I started my own valuation business. It's been a great pleasure to assist thousands of clients over the years, and today I am as enthusiastic about what I do as the day I launched my business.
Of course, the industry has changed substantially since that time, with technology and database access being aspects of the work that have brought in new processes and practices.
What has not changed about what I do, is the personal and individual service that I provide to my clients, which is why many of them have used my service multiple times over the years!
SERVICE AREAS
The Greater Melbourne Metropolitan Area.
Rural areas, on request.
