L2 Market Appraisal Flashcards
Properties (Client approached us with a portfolio)
2 x 1 beds prince of Wales drive
Lower floors overlooking train tracks slight view of Battersea park
1 x 1 bed Prospect Place
Midfloor, overlooking Battersea Roof Top Gardens and the new Highstreet
1 x 2 bed Haines House
Mid-level, overlooks raised garden, Bellway building and train tracks
Why did the client want a market appraisal on these properties?
Looking to free up capital
Mentioned about slight worries coming to the market
Needed to establish what she could get for each of her properties
Did you inspect as part of this appraisal?
Yes
I was granted access to each property by the current tenants
How did you adjust the values of subject?
I based the values of certain factors by using and sorting the comparable evidence
- Block
- Aspect
- Floor level
- Specification
- Balcony or wintergarden
- Amenities
Did you prioritize any data source?
My firms own data base was a very good start point
Right move, Rightmove plus and Lonres
Did you include any market trends/forecasts in your appraisal?
It included views on the current market condition
Top of the property cycle prices are plateauing / stabilizing
Battersea has a fairly consistent rate of supply and that will be established for the next 5-7 years at least
Interest rates have made it harder on buyers
What is a Market Appraisal?
It is a opinion of value given by an estate agent to a potential purchaser / vendor after doing research and giving basic market information
Property (Leasing Market Appraisal Riverlight 1)
2 bedroom east facing flat in Riverlight 1
- 12th floor
- Very good internal spec
- Partition balcony
- Views over the Thames towards Westminster and the city
What were the Key salient points of the property
Sale Points
- Multi aspect (East and North)
- Riverside building with views of Westminster the Abbey
- 12th floor
- Balcony had views west along the Thames
- Very good internal specification
- Large bedrooms with lots of built in storage
- Black out blinds in each room
- Parking space
- Access to the Pool & Gym
What effect does superior spec and views have on rental value?
When a property has a superior specification the comparable I will look for with also have superior specification it will normally mean a higher than average rent
You are paying for a superior product
What is the difference between a Market Appraisal and a Valuation
A market appraisal is an opinion of value freely given to secure an instruction a valuation is a signed contract to ascertain the most accurate value possible for an asset using available methods which you will be paid for
What are the limitations of a Market Appraisal?
It offers a useful guide to the property value but shouldn’t be taken as a reliable valuation
Is it appropriate to give a growth forecast for a market appraisal?
Yes it very much can be
- People want to know how much a property is worth and what its value could look like into the future
- estate agents will give a rough idea of this when sending through the Market Appraisal through market knowledge and looking
at trends
