what steps do you take when purchasing
- Thread starter Success
- Start date
You forgot step 5 -- profit! 
Generally IMHO there is no need to purchase data, it's all there on the web in the form of listings for sale and rent on domain.com.au or realestate.com.au but there is more work to do to get at it.
I also buy the property mags and use the data in the back. IMHO the articles are meh.
As for vendor motivation: not sure that is as important as determining a fair price for the property. Determining a fair price comes from the data. Then I look at the asking price and the time on market which is as simple as sorting the listings from old to new. (Actual time is hard to get but the number of page hits gives a good indication, more = older).
Since you mention IP, what is your strategy for profit: capital gain, yield, or a combination of both? What time frame are you looking at?
Generally IMHO there is no need to purchase data, it's all there on the web in the form of listings for sale and rent on domain.com.au or realestate.com.au but there is more work to do to get at it.
I also buy the property mags and use the data in the back. IMHO the articles are meh.
As for vendor motivation: not sure that is as important as determining a fair price for the property. Determining a fair price comes from the data. Then I look at the asking price and the time on market which is as simple as sorting the listings from old to new. (Actual time is hard to get but the number of page hits gives a good indication, more = older).
Since you mention IP, what is your strategy for profit: capital gain, yield, or a combination of both? What time frame are you looking at?
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Profit strategy = capital gain. Looking at 5 - 7 yr timeframe.
You forgot step 5 -- profit!
Generally IMHO there is no need to purchase data, it's all there on the web in the form of listings for sale and rent on domain.com.au or realestate.com.au but there is more work to do to get at it.
I also buy the property mags and use the data in the back. IMHO the articles are meh.
As for vendor motivation: not sure that is as important as determining a fair price for the property. Determining a fair price comes from the data. Then I look at the asking price and the time on market which is as simple as sorting the listings from old to new. (Actual time is hard to get but the number of page hits gives a good indication, more = older).
Not if you have the right resources.
RPdata tells you how long the owners have owned it, the price they paid, if it's been on the market before (sometimes places are listed for a few months then withdrawn and put on again later), and whether there are price changes. A new listing with a new price won't tell you anything on RE.com.
One place I bought was listed at $235K. I offered $215K and got it for $217K. Later when I had access to RP data I found out it actually started at $255K
I think that data is actually quite helpful.
Also being able to see whether the houses surrounding yours are owned by housing commission.
Also knowing how motivated the vendor is is one way buyers agents get places for a lot cheaper than they are advertised at in the first week of listing.
One villa I bought was advertised at $230 for a few days only (others in the same complex were advertised for $245K). BA rang me and asked if I wanted it for $215K
Yes please. Ran over and bought that in my lunch hour.First step is knowing an area well. That way you'll know when something is underpriced. You'll know the good from the bad streets etc.Then you can start finetuning into specific properties.
Yes, you need a subscription to RP Data, or befriend someone who has one
You can also find when the property was listed, including any price changes, at onthehouse.com.au for FREE! Under 'property values' type the address and once you've clicked on the property it will show this info at the bottom of the page. It's a good starting point.
You can also find when the property was listed, including any price changes, at onthehouse.com.au for FREE! Under 'property values' type the address and once you've clicked on the property it will show this info at the bottom of the page. It's a good starting point.
The price on the listing has got nothing to do with the price a vendor may accept or what the market may pay, nor has 6 month old data got much to do with what an individual property with all the variables and features that people value differently, will accept or pay at the present momment. Markets can change in weeks. Of course vendor motivation important to what a seller will accept. Some will only sell if they can get top dollar and an offer too good to accept. I have seen property go to the lowest tender where in a seperation the husband wanted to buy out the wife, the wife wanted too much so he sold at a price where the wife got nothing after the loan was paid. I bought a property cheap because the vendor was desperate for $5000. he came to me saying he needs money cant sell his house, I gave him $5000 for an option to buy in 12 months, then payments in installments no time frame as , as payments were made a higher % of ownership was transfered to me. Too negotiate a price you have to know what the vendor wants, you wont find that in the back of a dubious magazine.
Hi Success
Easy question
1. Know your local market intimately
2. Research most recent (3mths) comparable sales of similar properties
3. Know the property intimately ie: marketing history, motivation/reason vendor is selling and their circumstances, state/condition of property, positives/negatives, material facts, contract review etc
4. Determine fair market value and negotiate.
Best of luck!
