This is a tricky thing to estimate at the moment with sale prices fluctuating as much as they are and so much uncertainty in the market.
And this doesn’t help much if you’re about to go to auction or place an offer on a home that you’ve fallen in love with.
The key, as always, is research!
- Find comparable properties in the same neighbourhood that have sold in the last six to twelve weeks and see their sale prices.
- Ask your mortgage broker if they have the ability to run a property valuation on a platform such as CoreLogic.
- Arrange to have an independent building and pest inspection completed by a licensed builder and pest inspector. If you find a good one, they can often add quotes for works required to repair damage or restore items that need replacing or fixing. Once you know the costs of these items, you can use that as a negotiating tool to work backwards from the asking price.
- Go to as many open homes at the chosen property as you can and get a real gauge of the level of interest from other potential buyers. If interest is high, your opening offer or bid may need to be a little higher. If interest is low, you may want to start lower.
The bottom line will always be “how much do you want it?”. If you really want it, set your upper limit at a realistic level and go from there.
Good luck! It’s a tricky market right now and we’re here to help in any way we can!
