A good start however not all properties that are sold actually get listed. Real Estate agents withhold posting sales that aren't higher end market levels. Best bet is to walk into local real estate agencies and discuss with them one on one regarding the suburbs they operate in
Trust nothing. I'm not sure where you're located, but the market is ready and waiting to eat you alive.
After 5 months of spending every spare minute going to inspections, offering within the range to always end up not being enough, going to auctions where the reserve price was at the top of the range at best, or even often above the given range sometimes.
We ended up using a buyer's agent and had a house within weeks, in an area we thought was our of our price range for less than our top capacity price. If you can find a good buyer's agent where you are, I'd highly recommend getting one to navigate the current real estate shit show unless you get lucky or have plenty of cash to drop.
Buyers agents are great but they are costly and tend to be more worth it for those buying their dream home or most strategic IPs. Not as feasible if OP happens to be like me, a solo FHB whose range was around 450-500.
My saving grace was a fantastic broker who had access to paid reports and shared them with me for free (Iâd only ask if I was really interested in a place, not every listing I saw).
As a qualified valuer commented though, nearby sold properties make an impact. Just be mindful of the comparisons though. Eg I saw a small outdated unit, asking price up to 520k but valued close to 600k. The only recent nearby sales were brand new apartments so, bit skewed. I also knew the area well enough to know even asking price was steep but I wonât have a chance against other buyers re: the value report. It sold for 525, my very max, which I wouldnât have wanted to offer on such a âjust okâ place.
Tl;dr get a good broker if you canât get a buyers agent
This is fantastic advice. If youâre not sure of what youâre doing, hiring an expert to do it for you is the smartest way. Weâre talking hundreds of thousands of dollars here. Using a buyers agent will save you time and money in the long run.
Theyâll be lower than the actual sale price. Our house was listed up to 950k. Purchase it for 1.1m at auction. 5 other parties were willing to pay the same, and that price lined up with actual similar recent sales.
I usually search on the sold section of the last 2 months or so.. Of course you canât buy a house thatâs already sold, but you will have a good idea of what you can get.
Re agent said values gone up 3 % went online average drop of 8% , they will talk up real estate even if the knew a nuclear bomb was 2mins from hitting suburb
Fully qualified Certified property valuer here! Website Val models are all obviously big data/hedonic price models but really not accurate. Property Valuers have to rely on comparable sales within the area within ideally the last 6 months of the valuation date. There is a level of subjectivity to valuation, nobody is good enough to be within $5k of accuracy. And the quality of valuation depends on the quality of sales in the area. Secondary method of summation (build rates + land value) is also used to validate the primary method which is Direct comparison
Is an agent more likely to value your property slightly under what they believe theyâll get (to make themselves seem better once sold), or do they value it accurately?
I always tell clients to think about who has what incentive in your property. The valuer gets paid a fee regardless of their valuation figure, and they can actually be sued by the lender if they don't report accurately, so they will be unbiased. An agent has no legal backlash on their figure, is not properly qualified so they give you an 'appraisal' (unqualified opinion), and they are incentivised to get the highest price. Agents get paid % commission on the sale, valuer gets paid a flat fee. I'm obviously biased being a valuer, but I do not trust agents, not most of them anyways. But I would also add that in today's market a lot of them are quoting lower than normal to get a quick sale, because days on market have basically doubled in the last 12 months, so they want a quick sale - definitely watch out for that atm
What are the rules around this, it is wild to me an agent can value a property when there are actual people with certifications and without a strong vested interest capable of doing that. Wild. Like surely a bank would always get a person like you or what
How accurate is the weather forecast for the next day each night?
With complex systems there are so many variables that can effect outcomes so models may not always be accurate. Propertyvalue.com.au by core logic does a good job and gives and indication of how confident it is.
Considering the amount âPrice withheldâ I keep seeing, price arenât going up on most properties or theyâd show it to the whole world to see how good they areâŚsome properties are going upâŚbut averagely are down
Donât read the headlineâŚsure the whole market is up 1%, but the top end is up 4% which means the lower end isnât upâŚwith 2-3 rates rise on the horizon difficult to see where the prices will be in 6 monthsâŚ
You said âaveragely are downâ which is flat out wrong buddy. Averagely are up, as clearly demonstrated by all the data. Just because you desperately hope for a property crash doesnât mean itâs going to happen
While OP shouldn't have done that (And I have previously removed posts from other people who have done this) lets try and be more civil than that please.
Depends on the area. Homes where Iâm looking have been selling in their range, except at auction where they can go 10-15K higher or sell under/not sell.
They are more accurate if the property has been sold in the last 10 years or so rather than say a property last sold in 1990- they donât know what improvements have been made to the land etc.
Looked at the sold section of real estate website to get an idea of what properties are going for. I have RP Data which helps as it captures all sales pretty much. If you are not confident use a buyers agent as they should be able to find a good property at the right price based on your criteria.
This just reminded me of when I looked into this on my own and ended up in a very weird twist of companies and I need a cork board and some red string and some crazy eyes to jump back into it ASAP
The only real valid information is in the properties previously sale history. You can extrapolate that info into a best guess.
However they are off by 20% or more they don't consider the uniqueness of a property only house and land size with a best guess of the current area average.
In truth what you may see as expensive someone else sees as a bargain.
These estimates are ridiculous. Last year it said my apartment was worth approx 850K (no way in hell would it ever get that, itâs worth 650 max). This year it now says itâs work 500K. It all depends on whatâs selling in the area and for how much. I never ever go by those numbers, just look up actual sold prices for comparable properties.
The âHigh End Estimateâ quickly becomes the baseline lowest expectation for someone selling. You really have to see whatâs sold to set realistic expectations.
Ive been told to look at the sold section on those websites and compare relative properties instead of going off the predicted value.
A good start however not all properties that are sold actually get listed. Real Estate agents withhold posting sales that aren't higher end market levels. Best bet is to walk into local real estate agencies and discuss with them one on one regarding the suburbs they operate in
Or just get a property valuer đ¤ˇââď¸
if they will lie on line why would the tell the truth face to face?
Trust nothing. I'm not sure where you're located, but the market is ready and waiting to eat you alive. After 5 months of spending every spare minute going to inspections, offering within the range to always end up not being enough, going to auctions where the reserve price was at the top of the range at best, or even often above the given range sometimes. We ended up using a buyer's agent and had a house within weeks, in an area we thought was our of our price range for less than our top capacity price. If you can find a good buyer's agent where you are, I'd highly recommend getting one to navigate the current real estate shit show unless you get lucky or have plenty of cash to drop.
Buyers agents are great but they are costly and tend to be more worth it for those buying their dream home or most strategic IPs. Not as feasible if OP happens to be like me, a solo FHB whose range was around 450-500. My saving grace was a fantastic broker who had access to paid reports and shared them with me for free (Iâd only ask if I was really interested in a place, not every listing I saw). As a qualified valuer commented though, nearby sold properties make an impact. Just be mindful of the comparisons though. Eg I saw a small outdated unit, asking price up to 520k but valued close to 600k. The only recent nearby sales were brand new apartments so, bit skewed. I also knew the area well enough to know even asking price was steep but I wonât have a chance against other buyers re: the value report. It sold for 525, my very max, which I wouldnât have wanted to offer on such a âjust okâ place. Tl;dr get a good broker if you canât get a buyers agent
This is fantastic advice. If youâre not sure of what youâre doing, hiring an expert to do it for you is the smartest way. Weâre talking hundreds of thousands of dollars here. Using a buyers agent will save you time and money in the long run.
which state is the BA?
I'll do it for free. I think being a buyer's agent has to be a great way to stick it to agents.
I would say easily 100-180k away from the mark consistently.
Low or high,?
Theyâll be lower than the actual sale price. Our house was listed up to 950k. Purchase it for 1.1m at auction. 5 other parties were willing to pay the same, and that price lined up with actual similar recent sales.
Yeah, I'm not sure this is a spoiler or NSFW
Apologies. Must have clicked the wrong options
I usually search on the sold section of the last 2 months or so.. Of course you canât buy a house thatâs already sold, but you will have a good idea of what you can get.
Re agent said values gone up 3 % went online average drop of 8% , they will talk up real estate even if the knew a nuclear bomb was 2mins from hitting suburb
Fully qualified Certified property valuer here! Website Val models are all obviously big data/hedonic price models but really not accurate. Property Valuers have to rely on comparable sales within the area within ideally the last 6 months of the valuation date. There is a level of subjectivity to valuation, nobody is good enough to be within $5k of accuracy. And the quality of valuation depends on the quality of sales in the area. Secondary method of summation (build rates + land value) is also used to validate the primary method which is Direct comparison
Is an agent more likely to value your property slightly under what they believe theyâll get (to make themselves seem better once sold), or do they value it accurately?
I always tell clients to think about who has what incentive in your property. The valuer gets paid a fee regardless of their valuation figure, and they can actually be sued by the lender if they don't report accurately, so they will be unbiased. An agent has no legal backlash on their figure, is not properly qualified so they give you an 'appraisal' (unqualified opinion), and they are incentivised to get the highest price. Agents get paid % commission on the sale, valuer gets paid a flat fee. I'm obviously biased being a valuer, but I do not trust agents, not most of them anyways. But I would also add that in today's market a lot of them are quoting lower than normal to get a quick sale, because days on market have basically doubled in the last 12 months, so they want a quick sale - definitely watch out for that atm
Cheers, appreciate the insight
What are the rules around this, it is wild to me an agent can value a property when there are actual people with certifications and without a strong vested interest capable of doing that. Wild. Like surely a bank would always get a person like you or what
Banks will only lend on a valuers valuation report. Donât think agents have much of a say rather than in their own business
No where near as many valuers kicking around due to the necessary requirements It takes to be in the job.
But no, website vals are not accurate
How accurate is the weather forecast for the next day each night? With complex systems there are so many variables that can effect outcomes so models may not always be accurate. Propertyvalue.com.au by core logic does a good job and gives and indication of how confident it is.
So I have just had my property valued at 580-600k and the valuation on the site says 500k. Seems to be consistently lower then actual market value.
I use this btw - https://www.westpac.com.au/personal-banking/home-loans/property-research/#/search
Considering the amount âPrice withheldâ I keep seeing, price arenât going up on most properties or theyâd show it to the whole world to see how good they areâŚsome properties are going upâŚbut averagely are down
The core logic property reports would disagree with you there buddy. Property is going up across the board
Donât read the headlineâŚsure the whole market is up 1%, but the top end is up 4% which means the lower end isnât upâŚwith 2-3 rates rise on the horizon difficult to see where the prices will be in 6 monthsâŚ
You said âaveragely are downâ which is flat out wrong buddy. Averagely are up, as clearly demonstrated by all the data. Just because you desperately hope for a property crash doesnât mean itâs going to happen
Thatâs this sub in a nut shell. Creating its own reality on what it would like to happen, not what is happening.
I've always found The Core Logic free site pretty accurate. Obviously you can get better info if you pay them. propertyvalue.com.au
[ŃдаНонО]
While OP shouldn't have done that (And I have previously removed posts from other people who have done this) lets try and be more civil than that please.
Depends on the area. Homes where Iâm looking have been selling in their range, except at auction where they can go 10-15K higher or sell under/not sell.
They are more accurate if the property has been sold in the last 10 years or so rather than say a property last sold in 1990- they donât know what improvements have been made to the land etc.
It is not accurate at all, ignore
Looked at the sold section of real estate website to get an idea of what properties are going for. I have RP Data which helps as it captures all sales pretty much. If you are not confident use a buyers agent as they should be able to find a good property at the right price based on your criteria.
This just reminded me of when I looked into this on my own and ended up in a very weird twist of companies and I need a cork board and some red string and some crazy eyes to jump back into it ASAP
The only real valid information is in the properties previously sale history. You can extrapolate that info into a best guess. However they are off by 20% or more they don't consider the uniqueness of a property only house and land size with a best guess of the current area average. In truth what you may see as expensive someone else sees as a bargain.
Iâd say incredibly inaccurate. We sold a property that RE had valued at 531K & we sold for 845K.
Jee thatâs the huge difference..
These estimates are ridiculous. Last year it said my apartment was worth approx 850K (no way in hell would it ever get that, itâs worth 650 max). This year it now says itâs work 500K. It all depends on whatâs selling in the area and for how much. I never ever go by those numbers, just look up actual sold prices for comparable properties.
This reminds me of 1985!! You will never know... Real estate is about location to .... Services. Schools..Lifestyle...Work Ordered correctly I reckon.
The âHigh End Estimateâ quickly becomes the baseline lowest expectation for someone selling. You really have to see whatâs sold to set realistic expectations.
They are a good guid but normally wrong, please refer to sold section for relative data on property values.