Worth in­ves­ti­gat­ing

Do your re­search well and you will be able to com­pare prop­erty val­ues, writes Enzo Rai­mondo

Herald Sun - Property - - Streetscapes -

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.

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