Before entering into a property purchase, a thorough investigation should be made to assess what the property is truly worth in the current market. The first step is to collate research on recent sales in the area. You can collect data from realestate and domain.com.au as to what has recently sold in the area and price range you are looking in. Also when inspecting properties, ask the real estate agent about recent comparable sales and how they came up with the price guide.
By analysing past sales data, you will be able to determine an estimate of price range, but be sure that the sale you are looking at is as similar as possible to the property you are looking at purchasing. The comparable sale should be in the same suburb, ideally the same street, and have the same amount of accommodation and sqm of land/sqm on title. The property should be in similar condition, the same age, and carry the same title (Torrens or Strata). You should also only assess sales from the past 3 months, as our market conditions are changing all the time so it needs to be really current data and not data from a downturn in the market.
Some North Shore properties in Sydney and older established areas are very hard to determine from the outside their true market value, with land sizes ranging from 750sqm to 4,000sqm in the same street. Therefore, ensure that your comparable sales data is accurate and recent, and this should enable you to get some sort of educated feel for the present market.
If you need independent advice on a property and have a professional negotiate on your behalf, please contact our team today on 02 9960 1066 or enquiries@pkproperty.com.au.