Why is the sales price of my remediated block informed by the highest valuation instead of the average of the valuations as it was when the Government purchased my home?
These are two separate market transactions and the Government has been clear since 28 October 2014 that the repurchase price would be best and highest market value at point of sale.
The Land Development Agency will seek two independent valuations, with formulas in place to inform the block's market value in the case of variations. The formulas are:
- If the difference between the two valuations is 10% or less - the selling price is not less than the highest of the valuations.
- 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.
This is intended to defray the cost to the community for the overall Mr Fluffy Buyback Scheme.
It is important to note that blocks were purchased at market value, ignoring contamination.