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RE Agent Evaluations

Discussion in 'Real Estate' started by Dr Lobster, 2nd Aug, 2006.

  1. Dr Lobster

    Dr Lobster Well-Known Member

    Joined:
    12th Jun, 2006
    Posts:
    95
    Location:
    sydney nsw
    I have been investigating whether I have any equity I can tap into from my IPs.

    Without wanting to go to the expense of paying for a residex report just to find out we do not have any extra capacity we asked our PM to obtain a ball park number.

    As luck would have it, I now have access to RP data and was able to make my own assessment of the values.

    The evaluations from the RE were much below my expectations and calculations. Obviously I am biased and want the highest value possible however one of the vals came in at $15k lower than the price we paid in 2003. I realise that this was around the top of the market ( we had a feeling about this when we bought so eyes were open) however based on the rental I receive this suggests a 6.2% gross yield. Brisbane, Bayside at 6.2% gross yield ???????? Show me the way, I'll take a couple of them !!!

    So the question is do these guys really know what they are on about ? I don't want to waste my time with the bank if my estimates are wishful thinking and theirs are more realistic. What's your experience regarding this ?
     
  2. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Dr L

    Get three-four local REA evaluations and ask them to be as upfront as possible with their estimations. Ask them for supporting evidence of why they're quoting you certain values and only take past sales on board, as current homes for sale tell you absolutely nothing. Try to select experienced agents who are specialists in your area, as most of them will be intimate with the immediate area and should be able to provide you with accurate information.

    Great that you have access to RPData- make sure you know how to use it to your full advantage (the training should have helped here) and try to view your place as objectively as possible. This can be difficult when you're the owner, hence the need to get other parties involved.

    It might be an idea to pay for an independent valuation if you're concerned that the local agents results are not spot on. Residex market reports can be useful, but I take them with a grain of salt, as they base their estimations on statistics only. Residex don't know if you've improved your home, or if Coles has moved in down the road, or if the place next door has recently become rezoned for highrise units. This is where REA's and valuers come into their own, and it's up to you to use a combination of these resources to come to a (realistic) price for your property.

    Good luck with it all :)