The house we’re looking at has been on the market for almost six months. There was a home open yesterday and we were literally the only people there. Clearly it isn’t selling and we’re concerned that if we put an offer in, we may be paying too much.
Do you know if there is a process whereby a person can get an independent evaluation on a property they’re considering for purchase before putting an offer in? We’re pretty much all set on funds after discussing with the bank manager last week but we’re hesitant about putting an offer in on the house we’re looking at after seeing it again now. We love the house but HATE the location and we all know real estate is about location, location, location! The house is on a corner but because of the type of corner it is, three sides of your house have roads at them (not particularly busy roads but roads nonetheless). Also, the footpath that goes past the backyard is high enough that someone can peer into the backyard but we think we'd apply to the council for a higher fence since it wouldn't affect anyone and it wouldn't affect our vision when pulling out of the house.
Anyway, does anyone know anything that might help? I'd really appreciate it!
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09-03-2015 13:54 #1
Does anyone here work in real estate?
09-03-2015 14:24 #2Senior Member
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Elijahs Mum (09-03-2015)
09-03-2015 14:52 #3
I'm not a real estate agent but I do invest in property.
There are a few big valuations companies out there that banks use. Just do a google.
Otherwise I would do my own research - check out sold prices on realestate dot com dot au to see what similar properties have sold for in that suburb. If there aren't enough prices on there to give you an idea of what the one you want to purchase is worth, RP data have suburb sales reports that give you sold properties for the past 12 months. They cost about $29.95 from memory.
Use the asking price as a guide but the fact it's been available for so long, I would be offering at least 10% under the lower end of the range - maybe even more based on what your research turns up.
Don't at all offer within the range unless of course they've recently dropped the price.
09-03-2015 15:25 #4
to be totally honest - if you hat the location, I wouldnt buy the house.
I would find a different house where you love the location.
If you are set on that house, and decide to put in an offer - honestly, if its been on the market for a long time ... try a low offer and see if they will take it.
Other than that - if you do want someone else to look at it - look up a valuer in your area and ask them for an appraisal. It wont usually cost you very much, and its much more objective that the real estate agent selling you the property as its not based on commission.
I agree with A-squared though ... look through realestate.com, and buy the property sales in your area (as this is the actual sale price rather than what it was listed for).
09-03-2015 15:36 #5Senior Member
- Join Date
- Aug 2014
Contact your lender about using their "RP Data" subscription. I used to have this subscription myself but it was sooo expensive I got rid of it.
Your lender should be able to type the address into the RP Data website (it's a massive database with sales history/property valuations of about 80% of all properties in Australia) and tell you within about 15 seconds what the property valuation estimate is and what it last sold for, and in which year.
They will just tell you for free over the phone. You could also ask them to type in the address of some others in the street/area without having to fork out cash for a suburb report. My lender recently did this for me and it was super-helpful. That way you can compare property values and make a more informed decision regarding your offer.
It's not the same as having an independent valuer do the job, but this will cost you $1500K+ and might not be worth it.
Another thing you could try is downloading the Commonwealth Bank Property Guide app (it's free), which will bring up a list of all houses for sale in your area and their current estimated value. These values are actually taken from the RP Data database, but the estimations have very broad ranges and are not as reliable as RP Data itself.
But still fun to play around with and get a broad idea.
One other tip: check with your council whether they would be likely to grant high fences on that property BEFORE you buy it...you may find that they don't for some reason, and you can use this as a bargaining tool for getting the house at a cheaper price.
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Apple iPhart6 (09-03-2015)
09-03-2015 15:51 #6
Have a look at onthehouse.com. It will show what the property sold for previously and also properties in the area. It is a free service.
09-03-2015 16:35 #7
If you were in Nsw I could look up r p data for you but I don't have access to the other states!
A valuer will cost about $600 but in all honesty all they do is look up r p data and talk to the local real estate agents which as pp have mentioned you can do that yourself!
Realestate.com.au sold section is great - on the house.com not so much as the agents don't update that site like we do realestate.com.au so a lot of the time their data is wrong or you can get your own report done from r p data but its sales are based on once the property settled so won't be as current as realestate.com.au as they are out on upon exchange so are more recent
As pp said I would also talk to the council about the fence BEFORE offering in case they won't let you put in a higher fence - also the best people to talk to are the agents - call one that does not have that listing and mention in conversation that you like it but that it seems to have been on the market for a while and do they know much about it ( if they are any good they will know exactly how long it's been on for and what offers they have had) and ask them for a list of their recent sales
Then talk to the current agent and say:
We like the house but know it's been on the market for a while - what was the original asking price? How many offers have they had? Has the owner accepted any of those offers? Is there a reason the house has been on the market for so long? Are you the first agent? And what price will the owners take to sell the home today?
Never tell an agent what price you are thinking until they tell you one first - if they won't give you a price then ask - in your opinion as the area expert what is the house worth?
Because it has been on for a while you can go low to start but bear in mind they may not take you seriously which is why you need to work out in your mind what it's worth and if you are prepared to pay
Hope that helps !
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Apple iPhart6 (10-03-2015)
09-03-2015 18:39 #8
10-03-2015 02:15 #9
Thank you so much, ladies! The information you've given me has been incredibly helpful! I've been playing with that Commbank app all evening and we've had a look in some other areas because we think that maybe Helena Valley has had its "boom" and won't increase in value for awhile (it dropped 2% last year). It's a shame, I REALLY love that house and the general location, just not the specific location.
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