How to research property market value in COVID-19
Buyers are unlikely to purchase a property without inspecting it. In the COVID-19 pandemic, Government restrictions are curbing open homes and public auctions across Australia, meaning buyers are limited to viewing properties strictly by appointment or in smaller capacity open homes.
Your go-to tools for sussing out a property’s worth are reduced indefinitely. Uncertainty is high and the property market is a guessing game with thousands of dollars at stake if you get it wrong when negotiating.
Where you’d normally be armed with local market prices and have attended several open homes and auctions, right now these options may be limited to you.
So it’s challenging to weigh up the pros and cons of each home to determine market value and have confidence in putting a figure together to make an offer.
Tips to assess property value during Coronavirus
In response to the above changes, we’ve compiled our top tips to help you gauge property values in COVID-19 lockdown.
2. Compare apples with apples. i.e look beyond land size and bedroom count when comparing homes and:
- Search for sales that represent the closest possible fit to the home you are considering. Compare bedrooms, bathrooms, car spaces, yard space, block size, long term potential
- Consider the location, proximity to the beach, shops, public transport, schools
- Assess the home’s current condition internally and externally
- Factor in desirable views and aspect
3. What’s the competition like? Look at what is currently listed for sale that may compete with your property of interest. Check the real estate websites for properties within a -/+ 10% price range to see what else your money may buy locally and how your property of interest stacks up against the other homes for sale.
If virtual inspections are your only option, beware. We’d normally always recommend clients personally walk through these homes as their agents will highlight the best of a home and often overlook the weaker points – something a physical inspection can override.
Right now, this means talking to each agent selling competing homes and asking to do a live virtual tour with the agent tour or private inspection. This gives you a better perspective and gives you more control in terms of what you see and how long you can look at each room and feature.
4. Use online research tools such as rpdata.com to see the property’s previous rental details, historical sales data and days on market. You can then weigh up how one house vs another home may have grown in value over a set amount of years. You might see that homes closer to the beach or school appreciate faster than others and sell quicker.
5. Ask local agents a simple question – what are buyers in this area looking for in a home? Good agents will be able to pinpoint the in-demand aspect of a property to ensure the home you want is desirable.
Nut out the negotiation
Now that your i’s are dotted and t’s crossed with your market research done online, it’s time to focus on the negotiation to ensure you pay the right price. You’re ready to engage the expert property negotiations, Hello Haus, to ensure you secure the home on the best possible terms without overpaying. The buying process has changed, but negotiation is as vital as ever.