House Valuation and Comparison.

House Valuation and Comparison
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Table of Contents
Identify and describe the house (the subject property)....................................................................3
Find three (3) comparable/recently sold properties.........................................................................4
Describe the comparable properties in detail...................................................................................4
Evaluation of the subject property...................................................................................................8
References......................................................................................................................................12
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Identify and describe the house (the subject property)
The location identified for further research and locating residential properties is
Burwood, Australia. Burwood is a suburban area in New South Wales and it is considered a good
suburb for residential purposes. The purpose here is to locate a property in this area as per a
previously conducted local market research and compare it to other such properties that are
comparable and are already sold. This will be considered as the subject property in this
assignment. The residential property chosen here is a cottage with a surface area of 291 square
meters. The cottage is primarily built using brick and later it was plastered. The surfaces are
covered with Kamrok tiles so that it will add further insulation. According to Warren-Myers
(2016 pp.578-601), this house comes with central communications such as in-built electricity
line, gas line and water supply. It has an excellent sewage plan. There are two bedrooms, 1
bathroom, and 1 kitchen-living area space. There is a space provided with the house that can be
used for parking cars and as a garage. As for additional facilities, there is an internet connection
and the living room has a TV set up. All the rooms are equipped with smoke detectors and
carbon monoxide detectors. The kitchen comes with necessary appliances such as a stove,
cooktop oven, a microwave, and a refrigerator. According to Miller &Lutzkendorf (2016 pp.190-
199) the bedrooms are equipped with air conditioners. There is a space that can be used as a
laundry room and for other such purposes. There is a washing machine available in that room
along with an iron and ironing board. There is also a water heating appliance available that can
store hot water as well. The cottage is situated in the Burwood Cottage Village and the village
comes with other important arrangements such as sufficient street lighting, premises to park cars
and an exit built directly from the park. The roads and sidewalks are built with asphalt. In Ma,
Reed & Liang (2019 pp.215-232), the village is nearby to the Burwood Boxhill area where one
can reach within 10 to 15 minutes by walk. The Bexhill area has a huge shopping center with
numerous items available for purchasing and this serves as an advantage to whoever shall buy or
rent this property. This house has more than 70% clearance rates. Clearance rates indicate a
number that refers to the possibility of a property getting sold in a certain area. It also refers to
the fact that a lot of buyers are purchasing residential properties in that area which means the
price can change as per the sellers’ desire. As per Wong (2018 pp.342-352), it is an affirmative
condition for property sellers or renters as they can increase the price based on supply and
demand. The access to transport like tram and bus is easy from here. There is also a metro station
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at Boxhill. Even there are schools and Deakin University. The zoning is perfect as per the local
regulations as there is no restricted area or any environmental hazard nearby. This property has a
selling value of $892,500 and the rental price is $600 for a week.
Surface Area 291 square meters
Selling Value $892,500
Clearance Rate 70%
Area Space 2 bedroom, 1 bathroom & 1 kitchen-living
Rental Price $600/week
Find three (3) comparable/recently sold properties
The next step is to find some comparable properties that can be compared to the subject
property based on various factors. In order to be comparable, the properties must be residential
and must have similarities in other aspects such as similar surface area, zoning, and an equal
number of rooms, etc. As per Wilkinson, Halvitigala&Antoniades (2018 pp.389-399), the first
property is located at 2/9 La Frank Street, Burwood, Victoria 3125. It also has 2 bedrooms, 1
bathroom, and a garage space. The total land size is 1022 square meters, but the exact floor area
is not provided by the realtors. The property is still in brand new conditions. Another property is
at 2/1, Wridgway Avenue, Burwood, Victoria 3125. It has the same number of rooms and the
land size is 751 square meters. The garage available with this house has space for parking two
cars. The third property is a modern apartment located at 115/4 Yarra Bing Crescent, Burwood.
All the residents are chosen from the same area and almost nearby to each other in order to
maintain the similar zoning regulations. Since Burwood is considered a good suburb for living
purposes according to Mintah (2019), all the houses listed here have permission from local
government authorities and are listed as safe zones for living. All these properties are sold
recently or in the past few months.
Describe the comparable properties in detail
The first property was built in 2007 and the house was first sold in 2016. It was recently
sold in 2019 again. The rooms are still in new and fresh condition. Usually, a 2 bedroom house is
wrapped up in real estate selling in Burwood is $685,000. However, this house was sold for
$696,100. Since the land size of this property is a total of 1022 square meters, the property has a
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