In an escalating property market it’s more important than ever that homebuyers carefully analyse sales data provided by selling agents to qualify their offer price and do their own independent research of comparable properties to ascertain ‘like for like’.
Often real estate agents will quote a price for a property that has sold in the same suburb but the price does not take into account specifics such as bedrooms, bathrooms, parking, apartment and land size that can have an enormous impact on the asking price.
Similarly a property can be advertised as a four bedroom home but in reality it might be three bedrooms and a study.
The difference between a ‘comparable’ and ‘fair’ market price could be tens of thousands of dollars and in some suburbs, could be hundreds of thousands.
Comparable sales can be a potential minefield for buyers who feel under pressure to buy, particularly in a hot property market.
Buyers need to ensure that when they are presented with comparables, they are comparing apples with apples, and that they are in the same price pocket for that particular location.
Remember, a buyer’s agent can help analyse the data quickly using the best valuation tools available and guide buyers through the property maze with minimum stress.
