Hi all,
I'm currently undertaking some due diligence on some properties, and part of this requires that I establish their "market value", so I know the maximum price I will pay for them. I had a look through SS and couldn't see any threads specifically related to this topic. So I have a few questions.
Question 1.
How do you obtain your recent comparable sales data:
- ask the agent for a comparable sales listing
- purchase a comparable sales report from RPData (or subscribe)
- purchase a comparable sales report from Residex (or subscribe)
- purchase a comparable sales report from APM (or subscribe)
- purchase or use the free findmeahome.com.au service
- look at the local sales listing at the bottom of realestate.com.au;
- look in the Domain section of the paper every weekend, and keep a record;
- a combination of the above?
- another method?
Question 2.
If you purchase a report from one partilcular data provider, why do you use this one over the others? (for example, cheaper, better quality data etc).
Question 3.
Once you have obtained comparable listings, what do you do (if anything) to to account for the differences between your property of interest and the comparable property? i.e. the land size of your property might be smaller/larger; located in a more/less desirable area; have a larger/smaller house, be newer/older than the comparable listing.
So for example, you may use the land as the reference point, add or subtract $X depending on if it is located in a more desirable area, and so on.
Question 4.
If you find a property that is advertised significantly under market value, what due diligence would you undertake to ensure that this is a genuine bargain, rather than being sold at a low price because there is something significantly wrong with either the property (e.g. major structural issues) or the location (e.g. neighbours from hell, unfavourable development in the pipe line).
OK, I think that's all for now!
Thanks in advance for your replies!
Cheers
Lisa
I'm currently undertaking some due diligence on some properties, and part of this requires that I establish their "market value", so I know the maximum price I will pay for them. I had a look through SS and couldn't see any threads specifically related to this topic. So I have a few questions.
Question 1.
How do you obtain your recent comparable sales data:
- ask the agent for a comparable sales listing
- purchase a comparable sales report from RPData (or subscribe)
- purchase a comparable sales report from Residex (or subscribe)
- purchase a comparable sales report from APM (or subscribe)
- purchase or use the free findmeahome.com.au service
- look at the local sales listing at the bottom of realestate.com.au;
- look in the Domain section of the paper every weekend, and keep a record;
- a combination of the above?
- another method?
Question 2.
If you purchase a report from one partilcular data provider, why do you use this one over the others? (for example, cheaper, better quality data etc).
Question 3.
Once you have obtained comparable listings, what do you do (if anything) to to account for the differences between your property of interest and the comparable property? i.e. the land size of your property might be smaller/larger; located in a more/less desirable area; have a larger/smaller house, be newer/older than the comparable listing.
So for example, you may use the land as the reference point, add or subtract $X depending on if it is located in a more desirable area, and so on.
Question 4.
If you find a property that is advertised significantly under market value, what due diligence would you undertake to ensure that this is a genuine bargain, rather than being sold at a low price because there is something significantly wrong with either the property (e.g. major structural issues) or the location (e.g. neighbours from hell, unfavourable development in the pipe line).
OK, I think that's all for now!
Thanks in advance for your replies!
Cheers
Lisa
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