The worst feeling is inspecting a property falling in love with it going through the process of buying a building & pest report, attending multiple inspections, having the contract reviewed and organising your deposit only to see that it sells well above your budget.
Ensuring a property is fairly priced is crucial to avoid overpaying. By taking these three steps, you’ll be better equipped to make informed decisions and secure your ideal property without exceeding your budget.
1. Ask for Comparable Sales from the Agent
Start by asking the agent for comparable sales, ideally within the last two months. A good agent should provide at least three properties with similar size and specifications. Real estate markets shift quickly, so be cautious of comparables from early in the year—they may not accurately reflect current market conditions. By confirming that the comparables are recent, you’ll have a better gauge of the property’s fair value.
2. Conduct Independent Research on Recent Sales
Thanks to online tools and databases, buyers have access to more information than ever before. Don’t rely solely on the agent’s comparables. Agents sometimes make errors or may select sales that favor the price they’re aiming for. Always cross-check the information. For instance, I once encountered an agent who listed a comparable property as sold for $2,750,000 when it had actually sold for $2,600,000. This demonstrates the importance of verifying data to ensure accuracy.
3. Get a Second Opinion from a Different Local Agent
Reaching out to a different agent in the area can give you additional perspective. Many agents have either appraised the property or are familiar with its worth. An impartial second opinion from another local agent can also provide insight into the first agent’s selling approach—whether they typically prefer auctions, handle high volumes, or have a reputation for fair pricing. This extra insight can help you set realistic expectations and guide your strategy.
By conducting thorough due diligence on the price, you’ll develop an independent opinion of the property’s value. With this information, you can decide if it’s the right home for you and create a strategic plan that aligns with your budget. Whether you’re searching for a home, investment property, or development opportunity, these steps will help you confidently navigate the market.
If you’re considering a property purchase and need professional guidance, we’re here to help you or someone you know secure the perfect property under favourable conditions.
