This assignment follows on from the first assignment and focuses on the valuation of ONE property examined by you. The aim of the assignment is to gain knowledge about how to describe a property and undertake a basic valuation of a dwelling in a certain local residential property market.
This is an individual assignment. Please read the instructions carefully.
Assignment tasks
There are four (4) separate tasks to be undertaken for the assignment as listed below.
1. Find three comparable recently sold properties: Conduct a search in the marketplace and identify 3 properties which are similar to your selected dwelling. Make sure each property has sold within the last 12 months and you have information on the sale date, how much it was sold for etc. You can also choose similar properties that are currently on the market for sale as comparable properties. Try to select properties which have similar characteristics to the subject property as much as possible (for example same number of bedrooms, bathrooms, reasonably similar section and floor areas etc). Discuss the process you took for finding and inspecting each property.
2. Describe each property: Describe each sale property including the land and the building. Make sure you refer to the condition of each building (internal factors) and any other factors that may affect value e.g. on a busy road, large parcel of land, etc (external factors). Include a map of the location in the appendices. Add any other relevant information.
3. Describe subject: Describe the subject property (internally and externally). Discuss any property overlays (including zoning); any relevant planning requirements and physical characteristics (land and building components). Also discuss the external factors affecting its property value.
4. Compare to subject: Compare each of the 3 sale properties to your original property. Note you can only compare a house with a house (i.e. not with a unit, etc.). Comment on whether the (a) land for each sale is inferior, similar or superior in comparison to the subject (b) same process for house component (c) same process for entire property (i.e. both house and land together). By considering the comparison of characteristics, provide a subjective opinion on the value of the subjective property (for example, the value of the subject property would be lower / higher than the market value of comparable 1). Note that this is only a subjective opinion of the valuation of the subject property. You will need to use a Ranking Table Analysis to demonstrate your comparison.
Length: Maximum 2,500 words (excluding appendices).
Format: Use headings based on the above 4 sections