DD/ negotiating a price

[bryn]

Looking at a property at the moment, it seems to me its overvalued.

- comparable land size and age of house but in better condition sold 700m away for 100k under what they are asking in october

- CBA automated valuation was 150k lower then they are asking

- rpdata was in a range starting 200k lower with a best guess 80k lower.


In inclined to value it between the cba val and the comparable and hence start negotiating there. Just trying to work out the best way of putting it to them so they actually think about it.


I was the only person at the last open house, which is something

 

[Redwood]

Looking at a property at the moment, it seems to me its overvalued.

- comparable land size and age of house but in better condition sold 700m away for 100k under what they are asking in october

- CBA automated valuation was 150k lower then they are asking

- rpdata was in a range starting 200k lower with a best guess 80k lower.


In inclined to value it between the cba val and the comparable and hence start negotiating there. Just trying to work out the best way of putting it to them so they actually think about it.


I was the only person at the last open house, which is something

It will help if you let us know location? many factors impact val depending on your suburb even if the house up the road is 50 metres away (High school zones)

Depending on the area, properties can sell for significantly more than real estate val. For instance, in Melbourne, we had two townhouses at 1.1m each in the SE of Melbourne, as of Monday no buyer, as of Monday evening one buyer buys both for $2.5m, this included a commission to be paid to my RE agent plus the buyer advocate. Buyer was a fly in fly out from the Peoples Republic of China, amazing.......

Cheers, Ivan

 

[Corey Batt]

Sometimes val software can be very out of whack of market expectations. Best to look at comparable sales to get a strong understanding of the value and work from there when negotiating. Otherwise they can just counter your DD with similar sales at their sale end.

Residex reports generally are quite good for area sales history and estimated vals.

 

[Ideo]

From what you have said and the age of the 149 certificate I'm still leaning towards the overpriced option.

As I said before, I think they are hoping for someone to see "potential development site" and not actually do any due diligence apart from lot size.

 

[Brady]

I would be throwing away the automated vals theyre irrelivant In most cases. You have a comparable sale this is what I would be basing the value on.

If it's a development site what it's worth will all depend on what money you can make from it, so the comparable could be pointless.

 

[bryn]

The comparable is what I'll likely use to start negotiating, but I don't think they will like it- so after any tips on how to manage them/the agent best .

I was going to give him a call, mention the cab valuation & the nearby comparable and then make a verbal offer just under that comparable (it was in better condition).

 

[Brady]

I would be going into bat with the comparable. Asking the agent why they think its worth more...

And before you start offering more than the comparable I would be asking why do you think the property you're looking at is worth more?