A valuer’s approach to analysing property transactions, with Sam Powell – Ep. 98

For the latest episode of the Geared for Growth podcast, Mike is joined by Valuer turned Analyst and Buyer’s Advocate for Hello Haus, Sam Powell, to talk about the art of property valuation and how Sam’s training and background has equipped him with valuable skills in property investment.

Growing up on the Gold Coast, Sam was keen to trade in his suit and tie from his valuation days. Having spent years qualifying as a registered Valuer, he’s happy these days to take a more relaxed approach to his work and client interactions, but it’s those years of learning about valuation methodology and property markets that have held him in good stead for his new role as Analyst and Buyer’s Agent for Hello Haus.

In this conversation, Mike and Sam explore the rigorous steps Sam took to qualify as a valuer, and how his approach to valuing property differs now that he’s focused on the Buyer’s side. Sam explains his approach to comparable sales and where he believes people go wrong when they’re looking at properties at a similar price point. Sam and Mike talk about Automated Valuation Models (AVMs) and why Sam thinks these are problematic in determining value.

Mike asks Sam for his best advice for listeners trying to get as close as possible to what a property is likely to sell for, and Sam provides practical tips for investors trying to determine the value of their next property purchase. In a volatile market when every dollar counts in a transaction, this podcast is essential listening.

Here at MCG, we are passionate about creating a forum and education series for property owners and investors. We do depreciation differently, and offer a set rate for Replacement Cost Estimate reports. A first in the industry. Join our clients saving more on their tax today https://www.mcgqs.com.au/

 

Follow Sam Powell:

https://hellohaus.co/

For the latest episode of the Geared for Growth podcast, Mike is joined by Valuer turned Analyst and Buyer’s Advocate for Hello Haus, Sam Powell, to talk about the art of property valuation and how Sam’s training and background has equipped him with valuable skills in property investment.

 

• How Sam’s Valuation background built his analytical skills as a buyers’ agent
• The difference between valuing for bank risk, and factoring in future growth
• Understanding comparable sales
• Valuing in a heated market
• How much due diligence is enough?
• Relying on Automated Valuation Models (AVM’s)

“I add the growth rate so I might see a property that sold three months ago but then look at the data and it’s showing that it’s had a 3% growth rate over the last three months. I’ll then use that as a comparable, I’ll then add that growth rate to help me he start to formulate, it’s like a thesis basically, you’re adding more and more layers of confluence to give you that confidence” Sam 9:50

“Some people do a really in depth level of analysis and they’re the ones that often suffer from analysis paralysis where they can’t pull that trigger” Sam 11:48

“The premiums get paid on those properties that everyone wants, that family unit, and that’s what I’m trying to drive people into investing in ’cause that’s the emotional premium you’ll get on the back end” Sam13:34

“With residential direct comparison it is really your best method but you gotta understand the market cycle and what the market you buying in and obviously if you can lean on people that do every single day then obviously you’ll be at advantagous position” Sam 22:17

“The biggest thing about capital growth I’d say is you’re better to pay a fair price for a good asset than a good price for a fair asset ’cause the good asset is going to compound in growth overtime and that’s what’s going to help draw down upon your portfolio” Sam 24:56

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