A: While a number of factors come into play, in the end a property's worth is judged by only one figure - how much is somebody prepared to pay for it at the time?
The considerations for pricing a property are:
- Recent sales – within the past 6 months
- Property Location – Near Transport, Schools, Amenities etc.
- Condition – New property/off the plan, Victorian Terrace, Derelict House
- Seller motivation' - the reason the current owner is attempting to offload the property might also play a major role in determining the final cost. If a quick sale is required, vendors have little choice but to accept the best offer at the time without the luxury of waiting for a better deal.
- Economic factors – What are the interest Rates and affordability of real estate property
- Confidence of market – Market confidence can be global, national or local and is determined by governments, recessions, and any global financial crisis
- Market Competition – How many properties are available to be purchased, if high buyer demand exists at a time when very little property is actually available, prices are likely to increase
- Where and whom you are purchasing your property from. Beware!!! If you are buying your property from a property spruikers you may be paying well over the market value for the property. Property spruikers are property investment promoters who often run wealth creation seminars, offering property investment training and materials, and discussing property investment often through self-managed superannuation funds. They advertise their seminars in newspapers, and financial and investment publications. Recently some have moved off shore to run their seminars
Your Fusion real estate agent can provide you with information and advice regarding all of these aspects of the house-hunting process through competitive market analysis. You can register with us and well help you find your property that will meet your needs. It is 100% Free service from Fusion Realty!