After an affected property is purchased by the ACT Government under the buyback program, the house is demolished, the block is remediated and then deregistered.
The sale of remediated blocks allows the ACT Government to recover some of the costs of purchasing, maintaining, demolishing and remediating blocks, and safely disposing of affected homes.
The sale price for a remediated block is determined by the Suburban Land Agency (SLA) based on independent market valuations through independent property valuers. The SLA seeks two independent valuations to inform the market value of these blocks. In most cases, the selling price is no less than the highest of the valuations.
Valuations
When valuing the remediated blocks, valuers use a direct comparison method that takes into account location, elevation, block shape, and recent sale prices for similar blocks in the suburb and surrounding areas. This valuation process is also the same for cleared eligible impacted blocks that become available for sale.
The following formulas are used to inform the block’s value in the case of variations:
- If the difference between the two valuations is 10% or less – the selling price is at least the higher valuation.
- If the difference is between 10% and 15% – the selling price is at least 10% above the lowest valuation.
- If the difference is greater than 15% – a third valuation will be ordered and the selling price will be at least the average of the three valuations and not less than 10% above the lowest valuation.
The sale price offered to First Right Holders for Remediated Blocks will not be negotiable. Valuations are valid for six months.
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