The Fastest Way to figure out what a property is worth

[Smilla]

Hi All,

My partner and I have found an IP that we think may be perfect for us. We have just started looking in that area and havent had time to do much DD yet. The auction is in 10 days (I would usually avoid auctions, but like I said, at the right price this place would be perfect).

What is the fastest way to get an accurate idea of what a place is worth? It is very run down but in a good location so it's hard to find comparable places.

i'm looking at auction results and other places for sale. I've also looked at some property reports, but in Vic they dont show you actual prices (just their 'estimates') or how many rooms the houses had. Also you cant tell if they are similar houses or not.

Any ideas, other than getting a local valuer to go out and have a look?

 

[Smilla]

no ideas?

 

[aussierogue]

My first comment is that how can you say the investment property could be 'perfect' for you when you dont know how much its worth? Im guessing you must have a general idea. Anyway you could try a few things. Ring the agent, ring other agents, do a door knock, by a property report, tell us the location on the forum and let us have a crack, or yes get a valuation done.

Cheers
Aussie

 

[evand]

You can use one or more of these:

Check comparable sales in the neighborhood and compare properties and prices.

Check historical growth rates of the suburb/town and apply them to your property's last couple of sales.

Compare estimated rental yield of your property to the suburb/town as yield is related to price.

Buy reports from RP data, Residex etc.

Get a valuation from a registered valuer.


Theres probably a couple more i cant think of right now.

Compare all the above and you should have a feel for a price. I don't think theres a fast way if you want to be reasonably accurate.

 

[Smilla]

My first comment is that how can you say the investment property could be 'perfect' for you when you dont know how much its worth?

Cheers
Aussie

I think you can find a property that is the type of place you want in the location you want, but not know where is sits on the value scale.

It is hard with this place as it is a two bedroom house which is not common in the area. It’s hard to find comparable properties.

Second issue is that Vic property reports don’t show number of rooms, or exact addresses so you cant determine whether the properties ARE comparable.

It is currently a two bedroom house. The second room is too poor to be used as a bedroom IMO, and with some work you could build a third bedroom.

An idea I had was to imagine that it was fixed up and had a third bedroom and compare that to equivalent 3 bedroom houses, then take off the costs for the improvements…

Here is the house ( also posted it in the Frankston thread)

http://www.realestate.com.au/cgi-bi...=&fmt=&header=&c=19592252&s=vic&tm=1196374305

 

[Toni]

I am not familiar with the Cental Frankston market at the moment. The market in all pockets of Frankston seem to be changing almost monthly. I would however consider ringing other agents and ask for their opinion.

At least then, you would have some idea. You would probably need to add 10-20 thousand, given that they probably would prefer to sell you one of their properties.

Better still, then get someone else to ring and enquire, as a propective purchaser, how much it would cost to purchase a one or two bedroom property in that area of similar condition to the one your interested in.

Just an idea.

Toni

 

[Angelo]

Hi Smilla

I think that comparable data of what has recently sold in the area in question is your best estimate, as this is what the valuers use. Of the comparable data you identify try to note the condition of the properties you are drawing your comparisons from as this will obviously have a bearing on predicted price of the property in question. Be careful to also compare apples with apples.

Good Luck

 

[gerd.]

Hi Smilla

Have you considered establishing the value of the land.
Paying no more than that will make it a reasonable buy, paying less will make it a great buy.

Gerd

 

[aussierogue]

I reckon the house is worth 228,000. Good luck!