Are you paying a higher price for the property? How to find out the Right Price of the Property? Premium paid at the time of purchase will eat into your future returns from the property investment. This blog will discuss how to find out the fair valuation of the property.
It is a very misunderstood topic a lot of real estate investors get this wrong which is the audience I’m talking to but if you’re a homeowner and you just want to know what your property’s worth watch this blog you’re gonna learn a whole lot about that.
And I’m going to share with you where the confusion comes from and then how to get clarity alright now there is three main parts to this we’re going to talk about first is how you value property how’s that work.
So number one how is real estate valuation and here’s the great thing this is really simple because you already do it picture buying an iPhone on eBay before you would buy that wouldn’t you try to look.
And see what other iPhones were selling for identical the one you want to buy right if you go to a grocery store and you want to buy bread and you can try to compare which one is the best deal you are looking at different breads right to try to compare.
So that process of looking at comparable sales is how you compare most items you buy to figure out if it’s a good deal or if it’s overpriced Real Estate’s the same way you look at comparable properties and you look at what they sold for in comparison to the property that you want to know the value of and that’s how you figure out what the value is it’s really that simple.
So if it’s so easy how come everybody get it wrong right not everybody but a lot of people well there are there are two main reasons when that happens the first is where they’re getting their information from okay information source.
So I’ll put on this Boris it’s easy to fit where is the information coming from all right there’s two places where it actually comes from and the first one is county records and county records is what can cause a lot of confusion let me talk about that County records okay.
So in every county in Australia what you have is you have different departments and two of the departments that we deal with for planning records is going to be the tax assessor’s office as well as the recorders office or the Register of Deeds.
So we’ll start with the Register of Deeds the Register of Deeds is the group that records deeds and other such documents and so that can tell you some interesting information such as what the property was what liens are on the property who the owner is how long they’ve been the owner when that deed was recorded so when they became the owner those sorts of things in some areas the county records and specifically the recorders office has sales information but not all of them now.
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Determining Property Valuation the best way - Part 1