Property valuations often involve judgement. Ask 20 agents to value the same home and you may receive 20 different answers: even using the same local price evidence, each may give different weight to particular features.
Some focus on construction materials, finishes and orientation; others on location and nearby services. Surveyors and other technical professionals may place more emphasis on floor area and local unit prices.
Which valuation is right?
Each professional uses their own evidence and experience, but ultimately the price is tested by supply and demand. Not every aspect of a home can be reduced to a mathematical formula: judgement still influences the result.
There are, however, objective starting points:
FLOOR AREA
REFURBISHMENT CONDITION
PROPERTY TYPE
LOCATION
LOCAL SERVICES
Why can two homes with similar objective features have very different prices?
One might, for example, have an exceptional panoramic view.
Be careful: overvaluing a feature such as a view can produce an asking price the market will not support, prolonging the sale while the owner waits for someone to fall in love with it.
A balanced valuation measures what can be measured, then assesses qualitative features carefully. Even a seemingly priceless view must be reflected in an achievable price. The market will show whether that assessment was realistic or overly emotional. An experienced agent can connect technical evidence with the priorities of buyers and sellers, bringing both sides of the valuation together.
