Can anyone suggest ways to know the market price of a property without having to pay for the information?
Thankx for all replies.
1. Make very good friends with a property valuer
2. Marry a property valuer.
3. Become a property valuer
4. Do comparisons of similar sales by looking at what properties sold for on Realestate.com (because this is what some property valuers do).
Hi crusher, u’re so funny!!! [specool] I think investors always want to save money . I agree that we need to have good networking but normally we just get what we give.
Have u used the property valuer before? How much did they charge? Just for more information.
Good night crusher.voigtstrMember@voigtstrJoin Date: 2005Post Count: 176
I’ll add to crusher suggestions:
make good friends with (or marry) a real estate agent or a person who works in a real estate agents office and get access to the prices of similar houses in the location you are interested in.
And a slighty less useful answer. The market value of a house is the price for which the house sells for. (ie you dont know until its sold)
I think every house has its own market price. I think it’s really hard to tell the selling price is market price becos in many cases they are over or below actual market price. I read some one suggested that just knowing 1 or 2% of the market price in the whole country’s property market is already good. Is that true? Do the investor should concentrate on some areas to understand their market rather than running after the cash flow properties whenever they can?
Hope to see your sharing.
Good to see you took my previous reply in the way it was intended. [biggrin]
The thing about market price is that a valuer may value a house @ $200K, then he/she sees the that the price you have negotiated to purchase it for is $180K. Guess what, the market price is now $180K. $20K straight off the valuation -just like that, just because you were a good negoatiater or were quick enough to get a deal that was going for under the average market selling price.
So to summarise-Market price is usually the valuers market estimate (based on similar recent sales) or the purchase price on the contract that you have negotiated, whichever is the LOWEST.
I think what you said about focussing on a couple of areas at a time is a smart move. Before purchasing, I put a lot of time and effort into researching an area and all of the drivers that influence growth. If I was looking at too many areas at once I would spread my time too thin and probably start missing critical pieces of information and this can lead to making serious mistakes.
http://www.freepropertyhelp.com.auStuart MilneMember@stuart-milneJoin Date: 2006Post Count: 196
Market Value = The absolute maximum price the market will bear for the goods at that point in time. This is why it fluctuates so wildly.
With regard to valuers on one of my recent purchases the valuer was kind enough to bring in the Valuation at $4k OVER what I paid for the property, and that is before We started on the clean up!
Here is the valuation industry definition of market value-
â€œMarket Value is the estimated amount for which an asset should exchange at the date of valuation between a willing buyer and willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.â€
Now there can be a big difference in what is defined, how it is interpreted and what is actually done.
The likely accuracy of each valuation will depend on if it was done as a ‘short form’ valuation (property inspection), ‘desktop’ (no property inspection) or ‘kerbside’ (outside viewing only) valuation.
Your $4K over purchase price valuation may have been a result of a well negotiated purchase on your behalf and your valuer may be one of the few that are willing to quote fair market value rather than being conservative and using the contract price as the valuation if it is lower than what they would normally consider the valuation to be.
All I can say is congratulations.[biggrin]