HI
We went to an auction yesterday and learned a very valuable lesson that i thought I would share with you.
Do your homework on the value of a property!!!
We had identified an interesting property that we liked for a number of reasons. It is 18 months old and we were able to establish through a number of sources:
The market value of similar properties in the same estate that had been sold within the last 3 months.
The cost to build the same house in the same estate.
We believed the house was worth $360k to $380k and our friendly estate agent confirmed this as her personal belief based on her information.
The house sold for $448k!!!
Someone had not researched the area, nor the price to build such a house in that estate and as such have paid $70k to $90k too much for a house. That is virtually 20% above the market value. Ouch!!!
The lesson from all this is to do your homework thoroughly and be prepared to walk away from a sale when the asking price is more than the market value.
I hope that this helps.
Dale
We went to an auction yesterday and learned a very valuable lesson that i thought I would share with you.
Do your homework on the value of a property!!!
We had identified an interesting property that we liked for a number of reasons. It is 18 months old and we were able to establish through a number of sources:
The market value of similar properties in the same estate that had been sold within the last 3 months.
The cost to build the same house in the same estate.
We believed the house was worth $360k to $380k and our friendly estate agent confirmed this as her personal belief based on her information.
The house sold for $448k!!!
Someone had not researched the area, nor the price to build such a house in that estate and as such have paid $70k to $90k too much for a house. That is virtually 20% above the market value. Ouch!!!
The lesson from all this is to do your homework thoroughly and be prepared to walk away from a sale when the asking price is more than the market value.
I hope that this helps.
Dale