Definition of Valuation Land - Assignment Example

Valuation of land Name Institution Subject Instructor Date Table of Contents Table of Contents 2 1 Legal section 3 2. Location 4 3 Land 5 4 Improvements 5 5 Sales evidence 7 6 Valuation 9 7 Full analysis of sales 9 8 Check valuation methods 10 9 Valuation summary and conclusion 13 1 Legal section This can be defined as the most probable and fair value that a product should sell at in a competitive market, under all the conditions required in a fair sale where both the buyer and seller are acting prudently and are knowledgeable and there is no undue stimulus affecting the prices. In this regard, selling is termed as the passage of title from the seller to the buyer in a situation where both the buyer and seller are motivated, they are well informed and advised on the market conditions and a reasonable time is allowed for the exposure of the product to the open market (Ardeleanu-Jansen, 2002). The highest and best use property being valued is analyzed as vacant and also available for any developments as might be required by the user. Much consideration has been given to other programs which might require the needs of further developments. These are: The legally permissible needs – these arise in conformity to the zoning requirements, land areas and configurations, restrictions of the title deed or other constraints imposed by the law. Economically feasible and fulfilling the demands of the market. Physically possible which are based on the topography of the land, the area and the configuration of the site. The maximally productive arising from the maximum value of the land at present. 2. Location The property in question is on a street in the suburb areas of Darling Heights 120 kilometers north west of Brisbane, the capital of Queensland City. This land is constituted of mainly mixed housing which is appropriate for single unit dwellings typical for residential and huge density accommodation. The adjoining and surrounding houses comprise of single, two and three magnificent storey houses used mainly for accommodation and each containing mostly a single garage. The average density development in the locality is made up of courts and other styles of homes offering mainly two to three bedroom houses and motor garages. Other house arrangements vary throughout the locality. The main occupants of the houses in this region are retirees. Services available: The property is supplied with electricity, gas, adequate town water, sewerage, telecommunication services, refuse collection and public means of transport. Other amenities available in the area where the property sits include primary and secondary school for the children in the locality, University of Southern Queensland located about two miles from the property, a number of child minding facilities, fast food chains, hotels, supermarket and petrol stations located a few meters from the property. We also have sporting facilities and grounds including a rugby court, touch football, softball, and football/soccer and baseball playgrounds. Environmental hazards: there is no environmental hazard revealed by the enquiry done at the Council offices. 3 Land Toowoomba area has an estimated population extending to approximately 100,000 people; it also has a pleasant climate and rainfall. The property sits on a rectangular piece of land with little cross fall. The land is well leveled and has satisfactory drainage Suite 5 Dalzell crescent Darling Heights, Toowoomba Residential valuation report-house and land INSTRUCTOR: CLIENT: Shane Simmons. 1. PROPERTY DETAILS PLOT LOT NO 97 THE SP. 839414, Parish of Drayton AREA OF LAND. The area of this land is approximated to be 573 square meters. 4 Improvements Type of the property: this is a free standing residence of one level. Approximated age: the building is approximately 5 years old. Additions on the property: Construction: the building is constructed using stones and cement and sits on a concrete slab with a red tiled roofing and aluminum windows and doors. Accommodation: the property has four bedrooms, three of which have built-ins, the main bedroom has a ensuite bathroom, the lounge and dining rooms are combined, it also has kitchens and meals area, a spacious living room, a hall, front verandah and a single garage under the roof of the house. Fixtures: the property has a bathtub, a sink, oven, dishwasher, two water heaters, wooden kitchen cabinets, convectional air conditioning system, fire alarm systems and CCTV camera. External condition of the house: the house is well kept and repainted. Its condition is satisfactory. Internal condition: the property has superior interior décor and is well maintained. Improvements done on the ground: the ground has lapped and capped timber fences on the front and back boundaries. It also has a concrete drive away, the entrance path and the paving on the sides is in a good condition. Offsite improvements According to the information got in the survey, the property is located on roads with street lighting, cabs and efficient drainage system which are maintained by the municipal council. Areas Living area 400m2 The lounge 73m2 The garage 100m2 Transport and other facilities. The average distance from the railway station: the nearest railway station is the Darling Heights station, about 7 kilometers to the north. Public transport available: this area has a good network of buses. The most proximate major centre: the nearest regional centre in this locality is the Timboowa 4 kilometers to the North West. 5 Sales evidence Address of property Date of sale The sale price Description of property Fork crescent, Toomboowa 12/11/2010 $157,000 Approximated land area: 642.00 sqm. Was a vacant land with good access to service roads and other support amenities. The land was flat and on a rectangular piece. Darling Heights 2/3/2011 $190,000 It was vacant piece of land, undeveloped and on the south west of the darling heights town. The land was on a flat surface, with access to roads and other facilities like food stores, schools and supermarkets. Toomboowa ridge 6/6/2012 $300,000 Land area: 500 sqm. This was a stone and tiled project home. It had four bedrooms and an ensuite; it also had a superior finish, two kitchens, a living room and two garages. Demand and marketability The demand for houses and land in this area is growing steadily but the values have stabilized since January 2012 due to the rise in the interest rates. The marketability is regarded as average. It has been revealed that there are no adverse factors which could affect the marketability of the property since it has an access to all supporting facilities like roads, water, drainage, shopping and recreational facilities. 6 Valuation The report below is a summary which complies with the reporting requirements as set forth under the standard rules 2-2 (b) of the professional valuation practice (Australia, 2002). Extend of the details contained in the report are in line with the requirements specified by the client. Registered proprietor: according to the title search done in the first schedule, it was found that the proprietors are IM Owner and wife as the tenants in common and in equal shares. Easements and encumbrances: unless it is stated otherwise in relation to the property in subject, as the appraiser, I reserve the right to carry out any changes in the report if there is evidence of any easements. 7 Full analysis of sales A number of sales done on properties in the neighborhoods were found and used to generate the market value. In the generation of the market value, the property appraiser considers the sales to be market driven and similar to the subject in consideration in regards to location, size and other utilities in the area and in the time frame (Hyam, 2009). The presence of drastic changes in the ways in which land evaluation systems need to be applied in order to meet land use requirements. This occurs due to the fact that, there is constant change in trading opportunities and products such as, provision of anti-trust commodities and use of mortgage-based certificates, that has made control of land a complex issue (Heikkila, 2000). Thus, it is necessary to ensure that there is control evaluating the land price before settling for one. In the valuation, adjustments of sales with time were considered unnecessary as the sales were made recently. Adjustments of site sizes were applied to all the sales and are pegged on the valuer’s analysis of the lot sales within the neighborhood of the property. General The property comprises of a 7 year old stone and red tiled home built by the H Young. The accommodation in the property is regarded of satisfactory condition with the internal fittings comprising of marble floor with blinds to most windows. The garage door is manually operated and there is an alarm system and CCTV surveillance installed to the building. We also have an iron roofed entertainment area to the outside. The property has a bitumen feeder road to it and traffic is more congested during the peak hours. 8 Check valuation methods The property in question has been valued on the basis of ‘AS IS’ as required by the client. Final reconciliation The estimated market value of the product is assumed to be a good indication of the market value of the premises. A time frame of between 3-6 months is considered as the reflective and exposure time of the market value. Based on this data, the most probable market value of the property as at the date of valuation is $180,00 Certificate of valuation I certify that this property was inspected on 30/8/2012 and value the property at a price of $180,000 (one hundred and eighty thousand dollars) Valuer: Signature.......................... DATE: 30/08/2012 I ESTIMATE THE MARKET VALUE OF THE PROPERTY AS AT 30/08/2012 TO BE $180,000 .............................. ................................. I DID PHYSICALLY INSPECT THE PROPERTY. VALUER REVIEW APPRAISER Contamination of site As at the time the inspection of the house was done, there appeared to be no major signs of contamination. In the report, it is assumed that we have no major toxics which might be affecting the surface or the sub surface conditions of the land that would lead to eventual and adverse effects on the marketability of the property, the existing or other potential uses of the land sat on by the property and other sites in the proximity. Soil and environmental tests have also been conducted and revealed that the site is in good condition. Encroachments Survey done revealed that there were no encroachments on the land. Pest report At the time the inspection of the property was done, there were no signs of termites and borers on the improvements. It is therefore held valid that these improvements are free from infestation by such pests. Adverse environmental conditions The estimated value of the property in this report is based on the surveys conducted which revealed that, there were no adverse conditions on the environment which could affect the building and its market value. The environment could have some toxic substances which could affect the people living in. The person carrying out the appraisal process is not qualified in the field of environmental hazards testing and the client can request for a further test to be conducted. 9 Valuation summary and conclusion This appraisal reports made in pursuit of the request by Shane Simmons for the purpose of purchasing it and assessment of the stamp duty. Therefore, this shall not be used by any third party, institution or person. Valuation planning forms an important aspect in ensuring the land that is selected meets the required criteria. This ensures that there are better services that have been allotted to the community members in a given region. All these are geared towards the socio-economic aspects of human growth and development. In the evaluation process, various challenges are faced which requires appropriate planning and strategies. This has to involve the creative appraisals in the planning techniques. Consultations among the community members are also vital in ensuring that the set plan conforms to the wishes of the surrounding community members References Ardeleanu-Jansen, A., 2002. The Terracotta Figurines from Mohenjo Daro: Consideration of Tradition, Craft and Ideology in the Harappan Civilization (2400-1800 BC). Journal in Indian Archaeology in Retrospect, 2(1), pp. 205-222. Australia,2002. Land use mapping at catchment scale: principles, procedures and definitions. Kingston, A.C.T., Bureau of Rural Sciences. Bhatta, B., 2010. Analysis of urban growth and sprawl from remote sensing data. Heidelberg: Springer. Carissa S., Meagan, B., Cynthia, C. and Jenn, R., 2007, enhancing transportation: The Effects of Public Involvement in Planning and Design Processes, University of Minnesota, for the American Institute of Architects. Cavin, I., 2003. Urban planning. New York: H.W. Wilson. Frumkin, H., Lawrence, F, and Richard, J., 2004. Urban sprawl and public health: Designing, planning, and building for healthy communities. Washington, DC: Island. Hanson, S. and Genevieve, G., 2004. The geography of urban transportation. New York: Guilford. Heikkila, J., 2000. The economics of planning. New Brunswick, NJ: Center for Urban Policy Research. Huston, S., & Elliott, P., 2012. Property valuation and investment. South Melbourne, Vic, Cengage Learning Australia. Hyam, A. A., 2009. The law affecting valuation of land in Australia. Annandale, N.S.W., Federation Press. Inside Front Cover-Editorial Board, 2003. Landscape and Urban Planning, 63(2), pp.2-12. John, P., 2005, “A Holistic Transportation Planning Framework For Management and Operations,” ITE Journal, 75(5), pp. 28-32. Mckenzie, N., Coughlan, K., & Cresswell, H., 2002. Soil physical measurement and interpretation for land evaluation. Collingwood, Vic, CSIRO Pub. National committee for soil and terr, 2009. Australian soil and land survey field handbook. Collingwood Owen, R., 2000. Owen of new Lanark and new harmony. Donnachie: Tuckwell press. Pratap, M., 2001. Urban Planning: Theory & Practice. New Delhi: CBS & Distributors. Richard, W., 2000. The Genie In The Bottle: The Interstate System And Urban Problems, Journal of Public Roads, 64(2) pp.1939-1957. Rodiek, J., 2002. "Landscape and urban planning cover for 2003." Landscape and Urban Planning, 62(1), pp. 1-2. Todd, L., 2008. Introduction to Multi-Modal Transport Planning, VTPI Urban Planning, 2008.Regional Centre for Urban and Environmental Studies. All India Institute of Local Self Government, Mumbai. 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