Estimating buy price
- Thread starter Mike
- Start date
On the subject of overpaying, it would be ironic if the purchase price of the comparable properties were themselves the result of overpaying. You are then caught in a vicious cycle of comparing your property with the incorrect values of the other properties which means the estimation of your target property will be incorrect, also. If that is true, then other comparables like rent and yield would help get a more accurate estimation.
Mike
Mike
Sim
Administrator
Don't forget that you can rate threads - and I think this one deserves a full 5 stars !!
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Great work people... keep it up !
Right down the bottom of the page you will see a little box with "Rate This Thread:" above it... drop down the list and choose a rating from 1 (worst) to 5 (best), then click "Go".
There must be at least 2 votes before a thread rating is shown on the thread lists.
Great work people... keep it up !
Values
Whilst all the science in the world may provide you a tecnical 'answer' as to what the 'right value' is, the reality is that an individuals outlooksare subjective mostly and then you need to get acceptance from the vendor by convincing him / her your rationale is correct. Expecting him / her to take a reduction in the asking price, as in this case, in the order of $50,000 - $80,000 less from what he / she sees as other sale amounts in his / her street. GOOD LUCK?
I'de be interested to know how many occasions these types of positive outcomes are experienced - not many vendors I have met seem all that stupid to take the hit
Whilst all the science in the world may provide you a tecnical 'answer' as to what the 'right value' is, the reality is that an individuals outlooksare subjective mostly and then you need to get acceptance from the vendor by convincing him / her your rationale is correct. Expecting him / her to take a reduction in the asking price, as in this case, in the order of $50,000 - $80,000 less from what he / she sees as other sale amounts in his / her street. GOOD LUCK?
I'de be interested to know how many occasions these types of positive outcomes are experienced - not many vendors I have met seem all that stupid to take the hit
Good point Mickey. Naturally, a vendor is out to get best price so assume they are aware of the highest sales in the street and will be striving to get close to or better those top figures. That's why it is so important if you are the only bidder left and still under the reserve that you use the comparables to persuade the vendor to come down to a more realistic price level.
If you liked this thread and want to try another exercise I've started a new thread called Estimating buy price - Part 2 at: http://www.somersoft.com/forums/showthread.php?s=&postid=1380#post1380
Regards, Mike
If you liked this thread and want to try another exercise I've started a new thread called Estimating buy price - Part 2 at: http://www.somersoft.com/forums/showthread.php?s=&postid=1380#post1380
Regards, Mike
