Finding out the market value of a block

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persistence
Member
@persistence
Join Date: 2004
Post Count: 12
December 6, 2004 - 5:33 am
Can anyone tell me how I would find out what the value of a block of a particular block of land is? This block currently has a v run down house that I want to demolish and I am trying to work out what to offer. There are no other vacant blocks in the area that I can use as a comparison.
It’s in Victoria.
Any thoughts?
myoung
Member
@myoung
Join Date: 2004
Post Count: 33
December 6, 2004 - 6:40 am
Ask the agent for a copy of the council rates notice. It will give you a, usually conservative, valuation. If they wont show you, chances are it is well below what they are asking for it.
MichaelYardney
Participant
@michaelyardney
Join Date: 2001
Post Count: 616
December 12, 2004 - 11:35 pm
Originally posted by persistence:
Can anyone tell me how I would find out what the value of a block of a particular block of land is? This block currently has a v run down house that I want to demolish and I am trying to work out what to offer. There are no other vacant blocks in the area that I can use as a comparison.
It’s in Victoria.
Any thoughts?
While there is no historic records of land values in established suburbs, market research will help you ascertain these values.
Firstly council valuations are a good start to ascertain unimproved value.
The way we ( as property developers) work out the land value in a particular area is from the prices of properties that are sold where the dwelling adds little or no value to the area.
So for example I know in that East Brighton land value is $850 – $900 per sq mt. I have worked this out from recent sales of run down properties.
An old property on the average block of land of 700sq mts sells for $600,000. When people buy this type of property they tend to pull down the house and build a new home or group of townhouses. This means they do not attribute any value to the house and so they have bought close to land value.
Michael Yardney
Metropole Properties
http://www.metropole.com.au
jhopper
Member
@jhopper
Join Date: 2004
Post Count: 278
December 13, 2004 - 6:25 am
The other way may be to look at recent sales for new houses and deduct an appropriate value for building. You may have more properties this way to compare to although from a different angle!
cheers
Jan