how your property rates on your street
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August 12, 2008, 11:58 am
Filed under: how-to
Filed under: how-to
One of the most important things to understand when using the findmeahome website is the idea of a street rating. Put simply, this is a number from 1 to 10 that best describes how a property compares to others on the street.
The best property on the street would be a 10/10 property – it doesn’t have to be a mansion. The worst property on the street – even if it’s in quite good condition – would be a 1/10 property.
On the findmeahome website, you can be even more specific. If you’re looking at a 2 bedroom unit on a particular street, you can pick your number out of 10 based on the other units on the street: you don’t have to worry that the 5 bedroom house down the road might be better.
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what things are taken into account for the deciding the street rating of the house. Is it simply based on external appearance?
Also, how is the price range decided? Do all houses with the same street rating in the same suburb display the same price range?
Comment by mia April 9, 2009 @ 11:15 pmHi Mia, thank you for your query regarding the street rating. The street rating process can be as simple or complex as you want it to be.
In essence the rating process is an alternative to what a valuer does. They go out and find recently sold properties and find those which are similar in as many respects as possible and then attribute a value to a property based on these similar property sale prices.
You are doing a similar thing here but using your street to pick the similar properties from. We can do this because we know what the range of values in the street are.
The process does not have to be excessively accurate as you can do a number of estimates on either side of the rating you chose. This will give you a good idea of the likely range in value.
When developing the rating ask yourself a simple question. Is the house better or worse then other houses in the street or is it similar? Don’t dwell on it, your immediate reaction is what we are looking for here.
If you say similar then we have the answer the property is rated as a 5 out of 10. If you say better then we now know it is rated at something greater than 5 and likewise if you say worse then it is rated at something less than 5.
Now let’s select a rating either above or below 5 based on your answer.
As the typical property in your street has a rating of 5, this is what we shall begin with. Add or subtract 1 to, or from 5 each time you answer the following questions.
If the answer is yes or no by a “country mile” then add or subtract 2. If it is neither better nor worse do nothing:
Houses
Does it look better than most properties in the street? Add 1 if yes, subtract 1 if worse
Is it newer or in better repair than other properties in the street? Add 1 if yes, subtract 1 if worse
Is the house larger then is usual for the street? Add 1 if yes, subtract 1 if worse
Does the house have more bedrooms then is usual for the street? Add 1 if yes, subtract 1 if worse
Is the land content more than is usual for the street? Add 1 if yes, subtract 1 if worse
Does the property have a better view or aspect than other properties in the street? Add 1 if yes, subtract 1 if worse
Units
Is the block of units better than others in the street. Better facilities and newer? Add 1 if yes, subtract 1 if worse
Is the interior of the unit in a better state of repair than you would find in the same block or others in the street? Add 1 if yes, subtract 1 if worse
Does the unit provide a larger living area than is normal for units in the area? Add 1 if yes, subtract 1 if worse
Does the unit have more than 2 bedrooms? Add 1 if yes, subtract 1 if worse
Does the unit have a better than typical view for the street? Add 1 if yes, subtract 1 if worse
Is the block of units situated in a better location than others? Add 1 if yes, subtract 1 if worse
Where the outcome of the above is more then use a rating of 10 and likewise a low rating can not be less than 0.
I hope this helps!
Comment by fmah April 20, 2009 @ 9:36 amfmah, thanks for your answer.
Comment by Mia April 26, 2009 @ 10:57 pmI noticed that sometimes in the same suburb, houses with same street rating (but on different street)can have different different price range. Is this a good indication that one street is more expensive than the other?
Hi Mia. Please remember that properties attributes have an impact also. So the rating by its self is not an indicator.
If you were to compare, say three bedroom properties in different streets at a rating of say five which assumes the properties you are considering in each street are typical then you would get an idea of which street is likely to be more expensive. Having said that it won’t tell you which street has the most expensive properties in it. A review of all the ratings in the street will be the only way to get a complete understanding of the price structure for a street. I would recommend for you to purchase the FindMeaHome Right Price Report for your properties of interest as each report gives you the full range of values and associated ratings for that street.
Regards, FMAH
Comment by fmah May 12, 2009 @ 11:54 am