Thanks guys, i guess tools such as these do allow you to educate yourself quite quickly in terms of market value estimates in areas you are not familair with.
Are there any other users of Residex or My Valuer (Real Estates Investar)?
We usually use RP data to get an idea of what the resales are like in an area. We supplement this information by contact with local agents who give us feedback on recent resales and we also need to keep a watch on what volume is on the market, turnover time and percentage above and below list price.
In order to stay relavent we only concentrate on a hand full of suburbs.
We use the above information to calculate end values in our feasibility reports when assessing a potential development site. We also put the same amount of dedication and effort into assessing all the other parameters in the development feasibility report.
Using these strategies we recommended close to 80 development sites to out clients when times where good and it kept us out of the market over the last three years. However, now we are starting to see opportunities arise.
RobbieP wrote:grantos_champos , lets paint a picture for you..A few years back you bought your property for $100k and got a mortage of $80k. You loose your job and your debts (credit cards, car repayments, electricty, water, gas) are pilling up. You are unable to service your mortgage repayments and the bank is about to start the process of repossessing your home.
Time is running out for you. You consider selling your property via an estate agent, but you are advised the average days on the market is 2 months.. you dont have 2 months.
You know your property has a market value of of $200k, but this is not going to help your siutation. If you wait 2 months to sell your property, the bank would have already stepped in to reposses your home, leaving you with $0 and a bad credit history.
If an offer comes in at $150k, you have $80k to settle your mortgage, leaving you with $70k to repay all your other outstanding debts as well as some spare cash to keep you offloat for a while until you get back on your feet and the piece of mine of being debt free.
What would you do in this situation? Its a no-brainer.
Yea definitely a no brainer – back on topic, http://www.onthehouse.com has a new property valuing part to their website, but as has already been highlighted, not too sure on the accuracy. Better than nothing I guess. If anything it is another price/price range to help you determine an accurate figure for the property's value
Value for money for the individual investor I think it's very hard to beat a shared subscription to Price Finder, the valuation estimate widget on PF is pretty handy, as always you have to take with a few grains of salt though.
Robbie P- I can not think of any case where a vendor would accept $150k when a bank values the place at $200k. Even if they are behind in the repayments, it would just be plain dumb.
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