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Common questions home owners ask themselves include; ‘how much is my house worth?’  ‘what is the market value of my house?’  ‘how can I increase the value of my property?’

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What is market value?

The quickest and easiest ways to identify the estimated market value is to look at the recent (last 3 months) sale history of similar properties (land size, general condition of the property, number of bedrooms, bathrooms, garages, etc.) and within close proximity up to 2km away but still within the same suburb. Determining an accurate market value for any property, we know is dependent on a multitude of circumstances and market conditions.

However comparable sales with such specific data is not always readily available and accessible and remember they are only estimated market valuations based on a variety of factors. Your local real estate agents who have experience in the area and recent market trends will also give you an assessed value which they may inflate to get your business.

 

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What is developer value and how is it different to market value?

Determining an accurate developer value is also dependent on a multitude of circumstances, however a different set of factors. Developers base their purchase decision on what can be done to the land and the expected profit they can make using your property as their next development project.

An astute property developer will run their own feasibility on the potential development of a site to determine:

 

What can be built on the land based on the zoning classification & council requirements?

• How many dwellings can fit on the lot?
• Maximum height of the new structure allowed?
• Does this particular zone allow for apartment style developments?
• In other words how best to maximise the land and manufacture equity from it.

 

What is the expected time frame and how quickly can it be achieved?

• How long will it take to have plans and permits in place?
• How long will it take to complete construction?
• What settlement date is the seller seeking/ expecting?
• Running a tight ship time wise will increase your profitability.

 

What outcomes can be expected?

• What is the appetite and demand for this type of dwelling in the area?
• Who is our target market and what will they be prepared to pay at the time of completion?
• What additional costs does the developer foresee in the project?
• What would each separate dwelling sell for?
• Where will I stay during the development?
• Will I keep one dwelling and rent out or sell the remaining ones?
• Can I get access to the required funds or a loan to fund the project and at what interest rate?

 

If the numbers stack up for the developer, they will assess what the development site is worth to them. For many types of properties, a home owner can expect to receive 5-10% above market value for their property, provided the development criteria mentioned above is satisfied.

Work with us and we will put you in a developers shoes in reviewing the opportunity and the numbers based on your personal circumstances and how best we can improve on the land so that you are left in a stronger financial position than if you were to sell the family home as is.

Why work with us?

You will be hooking into years of industry experience in this very field, we will educate you whilst putting you first to achieve maximum value out of your property.

Our purpose in working with you?

To put more money in your pocket by working smart in how best to maximise the potential of your property in line with your personal circumstances whilst keeping it realistic and achievable

Do you have to spend money to fix it up first?

Absolutely not, the purpose of working with us is to take what you currently have and add value through a renovation or development with the end result of you coming out with more dollars in your pocket than if you had a cosmetic fixer up job and sold through your local agent.

Should I rather just sell to a developer for an extra 5% – 7% and move on?

Why sell to a developer who will just go ahead and do the same or similar project on your property and walk away with the lions share of your potential profits when you can be working with us and you walk away with the lions share of the profits on your own property!