Estimating buy price - Part 1
How to estimate what price to pay for a house.
The following example illustrates how a house in a suburban street of identical properties is valued.
Four houses in the same street have been bought with vacant possession within the last 12 months. The values of each property are affected by three items:
House No.-- Date bought-- Price Paid-----Repair Costs
No.20--------January-------$200,000-----$30,000
No.66--------March----------$190,000----$12,000
No.85--------June-----------$140,000----$35,000
No.46--------September-----$174,500----$40,000
What price should be paid for No. 54 in December where repair costs are $60,000?
I'd like you to have a crack at working it out before I give the answer. Anyone who gets it right deserves the title of guru.
Regards, Mike
PS: Sim, is there a better way to insert tables?
How to estimate what price to pay for a house.
The following example illustrates how a house in a suburban street of identical properties is valued.
Four houses in the same street have been bought with vacant possession within the last 12 months. The values of each property are affected by three items:
- the market is judged to be rising at 0.25% per month;
- the even numbers in the street are more popular because they back onto a park;
- the lower numbers in the street are always thought to be the better end of the street.
House No.-- Date bought-- Price Paid-----Repair Costs
No.20--------January-------$200,000-----$30,000
No.66--------March----------$190,000----$12,000
No.85--------June-----------$140,000----$35,000
No.46--------September-----$174,500----$40,000
What price should be paid for No. 54 in December where repair costs are $60,000?
I'd like you to have a crack at working it out before I give the answer. Anyone who gets it right deserves the title of guru.
Regards, Mike
PS: Sim, is there a better way to insert tables?
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