If you spot a property that you’re interested online but the price isn’t mentioned, how do you know what it’s actually worth?
In this article, we’re going to share a couple of quick tips with you so you can figure out whether it’s in your price range.
Build relationships with local agents
When agents pitch to local vendors for their business, they usually have to pitch the estimated property value by backing it up with sales data from similar properties in the area. Many good agents will share this data in the form of fact sheets at open house events.
Even if they don’t share this data, there’s nothing holding you back from actually asking them about it. Take a look at them online to see how they compare to the property you’re interested in. If they’re a close comparison, consider calling the agent and asking how close they come.
The greater the relationship you build with your selling agent, the more likely they are to give genuine thoughts as to what the property you’re interested in might sell for. They may also air caution towards properties that look good from the outside, but aren’t actually worth what the seller is asking for.
Get in touch with property managers
Your best bet is to get in touch with property managers who has a relationship with the selling agent, as they’ll have a higher chance of giving you an unbiased opinion.
Property managers are key sources of information for you, as they spend all day every day embedded in the market and have a strong grasp of the different variables that play into home prices. Even if you’re buying without thinking about renting your property later on, they’re still worth getting in touch.
The internet is an essential resource for your property hunt, so you should make the most of it. Certain real estate portals will have ‘sold’ sections, meaning you can look at properties that have already come off the market.
By checking previous sale prices for properties similar to the one you’re interested in, you’ll be able to build an understanding of the price range the seller might be willing to accept.
Take to the streets
If the internet doesn’t give you enough of the information you need, hit the streets and find it yourself. On average, it’ll take between 50-100 home inspections before you can truly say you’re familiarised with the local area. Keep on top of which ones you’ve visited already by setting up a spreadsheet, making notes on what price was quoted, as well as what it ended up selling for.
As practice, start a separate column where you estimate the final sale price and check back once the property has sold.
Check out property auctions
In addition to being fantastic places to swipe bargains, property auctions also offer invaluable information on the local market.
If you’re not sure what a property is really worth, attend as many auctions as possible. In addition to developing an understanding of which property types fetch what money, you’ll be able to see how many people are bidding at each auction.