The trick the pros use to work out what a house will sell for

After countless weekends inspecting properties, and hundreds of dollars spent on property reports, there are few things more disappointing than having your dreams dashed on auction day by someone with deeper pockets. The key mistake most new buyers make is blindly relying on the real estate agent’s price guide, which can mislead them to think the property would sell within their budget. Instead, buyers should use a method property professionals employ to estimate the value of a home, which helps narrow the search and prevents constant disappointment. Why the price guide is irrelevant The price guide provided in advertisements is based on the estimated result the agent has given to the vendor, which is derived from recent comparable sales.  All it takes for a property to sell well above the price guide is one emotional buyer,   Is your house worth more than you think? The big barrier preventing ordinary people from investing in property How to calculate the true price guide The underlying value of a property is the land. When looking at houses to buy, land size should be the most important factor buyers consider, and the part of the listing to analyse first. The size of the block is the key to estimating a property’s value, If you do some research on 10 comparable sales, and get the average square metre rate, it will be incredible how accurate it ends up being. The best way to determine what a property is worth is to ignore the price guide and work out an estimated price per square metre for that property type, based on recently sold properties in the area with comparable block sizes and features, such as the number of bedrooms. To calculate this number, simply divide the price a property sold for by its size, then do this for surrounding sales over the past six months to calculate an average square metre rate. Multiply that average rate by the size of the property under consideration, and you’ll have your true price guide. If every property you’re interested in falls outside your budget, work backwards and determine how many square metres you can afford, then search for properties by land size rather than price. What else affects a property’s value? While land size is the main factor, the type of property will also affect the value. A freestanding home is far more valuable than a semi, adding that new or renovated properties are likely to sell for more than a rundown home. “If you’re trying to get more value, look for something that needs a bit more TLC,” Sought-after features, like parking in an inner-city area or landscaping, may boost the value. Wide or corner blocks, those with dual frontages and properties zoned for higher-density housing may be worth more, as they often have potential for redevelopment. Estimating a property’s value will help buyers decide which properties to pursue and the maximum price they are prepared to pay, which will empower them.The research will give you conviction on what you’re doing. How to avoid paying too much You obviously want to get the property for the best price you can, people need to put themselves in the owner’s shoes

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About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085.
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