We find one of the biggest frustrations buyers have is when it comes time to price a property. Coupled with one of their biggest fears, overpaying, the process of pricing can quickly become overwhelming.
In a market where agents are supplying vague price guides, low-balling to generate interest and owners that are still wanting unrealistic prices, how can YOU the buyer accurately create a fair price guide?
Here are 3 ways, we as Buyers Agents create property price guides for our clients.
RECENT COMPARABLE SALES: Take a look at the recently SOLD properties on platforms like realestate.com.au & Domain and search for properties with the same characteristics. For example, compare homes that share the same; 3 Bed, 2 Bath, 2 Car & Land size. You will also need to note the quality of the property in order to create an accurate comparison. A newly renovated home will price differently than an unrenovated home.
DUE DILIGENCE: Next step is to then make sure you are comparing the property to those that share the same property factors. For example, our Due Diligence on a property will check flood zoning. A property that falls within a flood zone will price differently than one that is not. We find that some buyers do get drawn to a cheaper price of a home because on paper it looks like a bargain. But, in actual fact, the property falls heavily within a flood zone, which is reflective of the sale price.
UNDERSTAND SELLERS’ EXPECTATIONS: Our next step to pricing is simply understanding the sellers’ motivations for selling. Are the owners needing a quick sale, moving interstate, or are they simply testing the market to see how much money they can get for their home?Understanding the sellers’ expectations is key to knowing when to initiate negotiations or when to just walk away.
Don’t let a seller or agent talk you into a price guide. Always make sure you do your own homework and come to your own valuation. This will ensure you retain the power and will ensure you avoid overpaying.
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