Consider engaging a buyers agent & getting home loan pre-approval
Understanding Property Value: A Guide for Home Buyers
Overpaying for a property can lead to:
- Higher loan repayments
- Stretched budgets
- Potential funding shortfalls if bank valuations come in low
Determining Fair Market Value
Professional Valuation
- Cost: $200-$600
- Pros: Expert assessment
- Cons: Expensive, time-consuming
DIY Research (Recommended)
- Use real estate websites for median suburb values
- Consider property-specific factors
Key Factors Affecting Property Value
- Lot size
- Number of bedrooms and bathrooms
- Property condition
- Parking availability
- Orientation (north-facing preferred)
- Energy efficiency features
- Street characteristics
- Views and outlook
- Zoning and planned developments
Research Tips
- Focus on recently sold similar properties
- Compare final sale prices, not asking prices
Negotiation Strategy
- Use your research to assess if the asking price is reasonable
- Be prepared to negotiate, but act quickly to avoid losing the property
Final Steps
Consider engaging a buyers agent & getting home loan pre-approval
- Helps you act quickly
- Sets a clear buying limit
- Allows confident negotiation
Remember, thorough research and careful consideration of property features will help you make an informed decision and avoid overpaying.
