Finance focus
What’s a fair price for a property?

How do you know how much to pay for a property? As a buyer, it can be tricky.

Offer too much and you’ll end up paying more than market value. Offer too little and you risk missing out on your dream home or investment property.

So, how do you ensure you’re getting a good deal whilst remaining competitive against other buyers? Here are some tips.

Look for recent sales in the area

Start by looking at what’s been selling in your preferred neighbourhood. Focus on the immediate area surrounding a prospective property (say within a few kilometres), as values can differ greatly within the same suburb.

Historical price trends are great for background information, but for an accurate gauge of today’s prices, focus on sales within the last few months.

Look for similar properties

If you’re wanting to buy a three-bedroom home with two bathrooms, there’s no point looking at sales of one-bedroom units. To be relevant, comparable properties should be pretty similar to the one you’re sussing out.

Features to consider:

Tune into the market

Property market conditions can change fast, so it’s important to keep abreast of what’s going on. A sale price from even a few months ago may no longer be relevant if conditions have changed.

One way to keep on top of local market conditions is to go to plenty of inspections and auctions. You might even like to befriend a few local real estate agents and ask them to keep you in the loop about upcoming opportunities.

It’s also a good idea to keep track of:

Don’t take the advertised price as gospel

Remember, the advertised price is a guide only. This price can also change during the marketing campaign, based on comparable sales, market conditions and if any offers are rejected by the vendor.

Don’t be afraid to check with the agent whether the advertised price has changed.

Want to hear the good news?

You don’t need to spend countless hours researching – we’re here to help.

We offer a range of free property market reports to help get you up to speed with everything from the estimated price range of a particular property to local suburb information.

Get in touch today to find out more.

The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.