PropertyPricer incorporates a unique adaptation of CoreLogic’s suburb / town sales data into its measurement formula. This calculates the important upper and lower end prices based on a ratio of one suburb to all others in the same area grouping.
This feature called the ‘suburb / town price ratio index’ separates PropertyPricer from other valuation methods. Our unique formula allows for a direct price comparison between all suburbs and towns for similar properties (i.e. properties grouped into the same property points level).
PropertyPricer provides two critical very helpful property values:
Simply put a ratio is a comparison of two numbers indicating their sizes in relation to each other.
PropertyPricer uses ratios to enable a direct price comparison between properties of similar value levels between locations.
Using the ratio example of 1.7:1.0. The 1.0 is a fixed figure representing the average price of all properties sold in the city or the rest of the state or territory. 1.7 represents a single suburb or town compared to all the other suburbs / towns, and changes with every different location. A suburb or town with this ratio 1.7:1.0 is a relatively expensive area as it is 0.7 above the 1.0 average. If the ratio is 3.7:1.0, this is a very expensive area, as it is way above the average of 1.0. On the other hand, if a suburb or town has a ratio of 0.8:1.0 it is a relatively inexpensive area as it is just below the average of 1.0. If the ratio is 0.5:1.0, it is a very inexpensive area as it is way below the average 1.0.
A specific example would be a large executive residence in suburb x, which has a ratio of 1.2:1.0 and a price of around $1million. If we cut and paste that same property into suburb y, which has a ratio of 4.0:1.0 the price is around $4 million.