MODULE 4 Property Appraisal Checklist WWW.YOUR PROPERTY SUCCESS.COM.AU
Introduction The Property Appraisal Checklist is Step 2 in the property due diligence process. To discover if a property is viable as a project, you must first appraise what your end resale value would be post renovation (even if holding the property). It s also important to know the property s current market value, so you are not paying too much. The primary method used by valuers and real estate agents for establishing a properties value, is recent comparable sales from the nearby area. It s very important when selecting comparable sales, that you are truly comparing like with like. Beware of comparing your prospect property against more substantial properties, properties that were sold when the market was booming, or properties in a superior location. STEP 1 PROPERTY INSPECTION CHECKLIST An initial inspection of the property. STEP 2 PROPERTY APPRAISAL CHECKLIST A complete appraisal of the property s current and future renovated value. STEP 3 PROPERTY EVALUATION CHECKLIST A complete costing of the property. STEP 4 PROPERTY DUE DILIGENCE CHECKLIST A complete property due dilligence, including council and legal checks. 2
Checklist Property overview Year and period Comments Land size Agent s appraisal as is Agent s appraisal post-reno Reason for sale Lead source Vendor name & number Notes 3
Comparable Sales Comparable properties in original or dated condition Street Price Date Land $/sqm Comments 4
Comparable Sales Comparable properties in full renovated or extended condition Street Price Date Land $/sqm Comments 5
Floorplans Floor plans of comparable properties 6
Conclusions Conclusions My appraisal as is My appraisal post-reno First purchase scenario Second purchase scenario Comments Other costs Other comments 7
Disclaimer The information in these courses are based on the personal opinions and own personal experience of property investing by Jane Slack-Smith. Jane is not a real estate agent, financial planner, lawyer or accountant. All information provided by Your Property Success Pty Ltd is not intended to be specific to your circumstances rather one of many tools to assist you with your quest for information so that you can work with your own professionals to build your own investing strategy. After you have finished your own research the decision is yours how you want to invest and if indeed you do want to. Any information provided is not meant as investment advice. Jane Slack-Smith and her associated companies including Your Property Success Pty Ltd are no way liable for any loss, damage or misunderstanding caused by mis-management of any information provided or inferred. During the education process Jane Slack-Smith will introduce other companies and website and information to you which she is not associated with, these companies are providers of services and information. You need to do your own research and investigation of the information and services they provide Jane Slack-Smith and her associated companies including Your Property Success Pty Ltd are no way liable for any loss, damage or misunderstanding caused by mis-management of any information provided or inferred by those companies affiliated or referred to in the course material or associated website. 9