Knowing when the price is right

By Fornaro | 17 August 2020

Found the perfect home or investment property, but unsure about the price tag? It’s the eternal question faced by property hunters: what is a fair sale price?

No one wants to pay more than the market value for a property, so how do you ensure you’re getting a good deal? Here are some tips.

Arm yourself with information

Knowledge is power, and when it comes to negotiating the sale price, the more you know about the market, the better.

The good news is you don’t need to spend countless hours searching the internet for information! Speak with your broker about a comprehensive property market report to make an informed purchase decision.

Property market reports

Property Valuation Report

If you have your eye on a particular property, this is the report you’ll want to get your hands on. A property valuation report will explain:

• The estimated value and price range of the property
• Property details like the year it was built and floor area
• The sales history of the property
• Recent nearby sales so you can see current market values and sales trends
• A suburb snapshot (including the median price, number of past sales, capital growth and sales by price charts).

Suburb Report

Great for those wanting to know more about a particular suburb, it includes:

• An overview of the suburb, including geographic and demographic details
• The median sales price, plus useful comparisons like the number of properties sold versus the median sale price, and average days on the market versus average vendor discounts
• A market activity snapshot showcasing properties currently on the market and recently sold properties
• Information for investors (median rent, indicative gross rental yield charts and current properties for rent).

Suburb Statistics Report

This gem offers an area profile of the suburb, plus:

• Comprehensive median sales price data
• Sales per annum and sales by price
• Demographic information (household structure, occupancy, age, gender and income).

Why now is a good time to buy

Australia’s property markets have held up relatively well against the challenges of COVID-19. In recent months, we’ve seen mild declines in dwelling values in some capital cities, but prices have increased elsewhere. It all comes down to finding the right property in the right location!

Regional Australia also appears to be performing well, with steady gains in home values. For those who like the idea of less congestion and typically lower price points, a tree-change or sea-change could be on the cards.

Lenders are competing fiercely for business and as a result, there are some competitive deals out there on interest rates. Another compelling reason why now could be a good time to buy.

Next steps

If you’re considering a property purchase, be sure to get pre-approved on your finance sooner rather than later. Pre-approval is an indication from your lender that you qualify for a home loan up to a certain limit.

Having pre-approval puts you in a better position to negotiate on price. Why? For one, you’ll be confident about how much you can borrow. Two, you’ll know your ceiling price in advance. And three, it shows vendors you’re serious about buying.

With interest rates remaining low and prices becoming more affordable in certain markets, it could be a good time to buy! If you have your eye on a particular property or suburb, get in touch so we can assist you with information to help you make an informed decision. We’d love to hear from you!

Additional Sources

Housing Values Decline For A Second Consecutive Month In June, As Turnover Recovers From The April Low. 2020

This article is for general information only.