Knowing the worth of a property is essential when it comes to avoiding overpaying for it. You can achieve this by doing your research, setting a benchmark, understanding the market, and making sensible offers.
Set a benchmark
To set a benchmark, compare nearby properties that have recently sold. This provides you with a bargaining tool when negotiating with the seller or agent. Ensure that the properties you compare are similar in size and number of bedrooms, so you can make an accurate comparison.
Keep in mind current market conditions
Keep in mind that the property market is constantly changing. Doing your research once and sitting on it for months won’t help you much. Attend open houses and auctions regularly to gain insight into the current state of the market and the amount that certain properties are going for.
Expand your search
Don’t limit yourself to a particular area or suburb, take a look around to expand your options. You might find your dream property just a couple of suburbs away that still meets all your needs.
Don’t exceed your financial capacity
If you’re taking out a loan to purchase a property, it’s a good idea to seek pre-approval before making an offer. This ensures that your offer will be taken seriously by the seller or their agent. Having finance sorted out means that you can calculate your stamp duty and associated costs and what price range you can consider. Remember, only commit to a loan that you can afford alongside your current income and real expenditure, even if you are approved for a higher loan amount. When calculating the figures for the price of a home, budget for maintenance and repair costs, as well as any other expertise you may require in the purchasing process.
Bring in the extra support
You may want to consider using the services of a buyer’s agent who can help you negotiate a price or bid for you at an auction.
