Hi everyone,
I am looking to buy a house in the inner suburbs of Melbourne & have found that the house is selling for less then the council rate valuation.
On one it is selling for 320-350k but council valuation is above $400k & the other one basically the same.
I am concerned, please help me. I dont know whether there is something that i dont know about the area or whether it is just that house prices have dropped so much.
Has anyone else came across this same thing??
Thanks, Priscilla
Council valuations are done every 2 years. So the house may have dropped in value since the last council valuation due to the current market conditions.
My next door neighbor wanted $510 for their house but only got $410,000 at auction. Look at comparable houses in the same area and see what they are either selling at or what the auction results are.Personal situations of the vendor can also change the selling price. Job Loss, Divorce, Bank repossession looming, need for 320,000 for another purpose, ect.
Like in Victoria in Corio has a lot of houses for sale because Ford based in Geelong / Corio cut back their work force..Duckster's right on the money, you can only know if the property is priced correctly based on RECENT COMPARABLE SALES, i.e. a new Registered Valuation.
A potentially 2-year old council valuation basically means NOTHING! For starters, Council has ever inspected the house, so how would they know what state it is in or what it is really worth?
It might be a great deal, or it might just end up being what the current market value is. Definitely dig and research to be sure you are actually getting a bargain before commiting.
In answer to your last question. YES, I come across those spreads pretty regularly these days, and it is important to determine through a registered valuation by a reputable company, that they are "real" spreads not just a cooked up price.
Vicky
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