You found the property you wish to buy – be it an investment or your home. Let us say the asking price or the price guideline is $1,000,000 but the selling agent will close the deal if you are willing to pay $965,000 – an amount that you could have already been pre-approved for, by your lender.
The question is whether the property is really worth that amount?
It is also the question whether your lender will finance your purchase?
If your proposed $965,000 offer is $80,000 more than the fair market price, then your lender will certainly not approve an unconditional loan for you to buy the property.
Question: Do you walk away after spending week nights short-listing properties and Saturdays inspecting, during which you emotionally got excited to have your hopes dashed
take out a personal loan to bridge the finance discrepancy?
Even a home is like an investment property. One day you will be selling it.
The problem if you over pay the purchase price is that your property will for a long time play catch-up with the real estate market and when the time comes for you to sell, you will be disheartened when the selling agent proposes a price range that is equal to or less than what you paid for, few years ago. Do not forget, your acquistion cost is not limited to the purchase price. There is the stamp duty, there is the legal fee and there is the due diligence expense all incurred when buying the property.
Similar to other assets, you really make your money when you “buy” the property not when you sell it.
Our property appraisal service will help you determine the correct purchase price.
This service is ideal for the prospective buyer who wish to conduct their own negotiations but do not possess the necessary market knowledge to determine the fair market price of their chosen property.
It is most suitable for:
- Home Owners
- Self Managed Superannuation Fund (SMSF)
- First Home Buyers
- Inspect the property and document its characteristics;
- Undertake a comprehensive market research to determine its fair market price;
- Review all available building, pest and strata search reports;
- Submit the report for your consideration and as the basis for your own negotiations.