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.
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 $902,000!
So just realise that the price your future home is being advertised for isn’t necessarily the price you will need to pay!
Distance to Brisbane (KM)
Median House Price ($)
Average Vendor Discounting (%)
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.