Working out market value

THE purchase of real estate usually has two key components; one is emotional, the other financial.

“Most home buyers (as opposed to investors) want to feel a strong attraction to the property they purchase,” Bellarine Property managing director Christian Bartley said.

“After all, they are going to live in it. But they also have to make the right investment decision because their enjoyment of the property can be spoiled if, further down the track when they go to re-sell, they realise they paid too much or made a poor investment.”

Mr Bartley said that the key to both financial and emotional success is doing your homework thoroughly before you purchase.

“You can speed up the research process by making sure you look at all the properties that satisfy your basic criteria, including those that don’t sound like your ideal home.

“Even properties that don’t appeal are relevant for building up a portfolio and getting a handle on price trends.”

Mr Bartley said that many intending purchasers turn down the opportunity of inspecting properties in their price range simply because they “don’t appeal”.

“But the more properties you see in your price range in a short space of time, the sooner you will be ready to buy.

“And you’re less likely to end up seeing your dream home early in the piece and feeling you’re not ready to make an offer.”

Mr Bartley advised purchasers to take a notebook with them and jot down their comments for later comparison.

“Use every available information source.

“When you see a signboard with a sold sticker on it, ring the agent and find out what the property sold for. Make sure you follow up all the houses you have inspected. Did they sell quickly and if so how much for?”

Mr Bartley said that most professional agents will provide information about recent sales.

“Remember you need to look at a lot of properties to feel confident you have a trend or a pattern emerging.

“If you know what 10 or 12 properties have actually sold for within a $10,000 range of your budget, you’re probably ready to walk into a house and say I like this one, and I’m prepared to pay ‘x’ dollars for it.”

For more information, phone Mr Bartley on 0410 695 325, email [email protected] or head to bellarineproperty.com.au.