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Value accurately

House price research is THE first step in buying a property. Unfortunately, it’s one of the most confusing steps too.

 
 

To start with:

How do you actually work out what a property is worth?

Or even more important:

How do you make sure you are getting the BEST deal on this house?

If you’ve ever asked yourself these questions, this chapter has you covered.

You could save 8-10% off the advertised price

When buying a house there is no hard and fast way of determining the value of a property.

The price is what the market is willing to pay.

Therefore all properties that are being sold on the market do not have a hard and fast set price like you would have when going to the supermarket to buy a loaf of bread.

So the first step in negotiating a house price is recognising that the advertised price is NOT the final sale price.

This is where a term called vendor discounting comes in – this is is the discount between the originally advertised price and the final sale price.

And in Brisbane, it’s common for the final sale price to be 8-10% BELOW the originally advertised price.

In other words, and as an example the figures show a home in Milton being advertised for sale at $1,000,000 is on average discounted by 9.80% – almost 10%…

And will most likely sell closer to $902,000!

So just realise that the price your future home is being advertised for isn’t necessarily the price you will need to pay!

Suburb

Distance to Brisbane (KM)

Median House Price ($)

Average Vendor Discounting (%)

Milton

2

$965,000

9.80%

Park Ridge

19

$555,000

13.90%

Mount Ommaney

13

$815,000

9.90%

East Ipswich

29

$269,000

9.70%

Highgate Hill

2

$1,185,000

9.50%

Carbrook

33

$915,000

8.40%

Rochedale

14

$1,045,000

9.00%

Source: CoreLogic and RealEstate.

When you plan to purchase a house, it’s important to understand the value of property accurately. However, it’s not always an easy task.

When you try to find the accurate numbers, there can be a lot of conflicting information available in the market. The media may give you a completely different set of figures, whereas real estate agents might tell you a different story behind each estimate.

First of all, to be able to get a better understanding of how to value a property, you must be aware of the concept of ‘market value’.

Here’s a quick and simple guide that will help you find out how to value a property and make the right decision.

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