Do your research well and you will be able to compare property values, writes Enzo Raimondo
NE of the biggest challenges prospective homebuyers face is forming an accurate view about the value of a property.
Demand in the Melbourne market has been increasing in the past six weeks and this will affect prices.
Demand at an auction, and to an extent at private sale, is driven by a range of factors, all of which you should have an understanding.
The first factor is the quality of the property. It’s generally understood that the higher the quality of the property the more it will sell for.
REIV research has shown that location, proximity to facilities and amenities and the condition of the property are, in that order, the main drivers of demand.
The second factor is often the most difficult to gauge, competing homehunters.
Because the majority of homes are sold in an open market the price is determined by competing buyers.
The party that is prepared to pay the most will invariably be successful.
The third main factor is other homes for sale in the same area.
Because of the importance of
Soaring values: this house was quoted at $580,000 and sold for $640,000.