With such a big property market, how do you know if you're not paying an arm and leg for the property you buying?
By HouseFurb, Oct 24, 2019
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All Sellers want a high offer for their property, and agents always mark-up prices to get a higher commission. So how do you know if you're buying a property at a good price?
It is critical for every buyer to do a bit of homework before they purchase a property. Doing comparable analysis on sales in an area is very important so that you know what properties are being bought for.
Estate Agents tend to control the market at times by listing properties for a very high price so that they can get a high commission. Here are the steps you need to take to make a good buying decision:
- Run a Property Report on the property you want to buy. The report gives you current owner's purchase price, municipal valuation, size of property, what other properties in the area have sold for that have similar size, bond history on the property, and what properties for sale in the area are listed for. A property report will save you a lot of time and money. Click HERE to view sample report.
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- Check on the report how much how much the property was bought for and when. If the seller bought the property a long time ago for a low price, there's a high chance to negotiate the purchase price.
- Check the sales comparables (Recently Registered Transfers) on the property report. They will indicate how much the last 10 properties in the area sold for. Compare the size of the property and features. Look out for properties that sold for a similar price with the same size and features, your offer should be around that range.
- Amenities in the area play a big role in influencing price of properties (what amenities are available and how far they are). When buying, always consider the posibility that you might resell in future, do not buy where the market is difficult to sell.
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