house price

Property Reports 101: Why use them?

by Chris Lang on March 3, 2010
Property Reports 101: Why use them?

House in the airThis post is the beginning of a new series “Property Reports 101″. There will be 3 posts in the series, talking about the reasons to use property reports, about the various report types and their purpose, and about the various report providers with their respective pricing.

My goal for this series is to help you understand whether you need to buy a property report, what kind of report will be right for you and how much you should spend on it.

Let’s begin.

If I had to name just one reason to purchase property reports when considering buying or selling a house, it would be time saving. If I had to name one more – it would be the peace of mind from the knowledge that you’re getting or paying the right price for your house.

Property reports will save you time that you’d have to spend searching for free sources of property sales data. Many real estate websites will display a small number of sold houses with prices in almost any area, but to gather this information and put it together in an orderly manner will take a lot of time and patience (speaking from experience).

Before we move on to detailed comparison of various property report types, let me explain more about WHY you would need a property report for your street, suburb or area and how it can help with your decision on a price and timing of the purchase or the sale.

Home buyers – 3 more reasons to purchase a property report

1. If you’ve already decided on a suburb you want to buy in, there are more expensive and less expensive areas within the same suburb. Looking at your property report you can map those areas and see what is within your price range and what isn’t.

2. If you’ve already decided on a street or an area within a suburb, using a property report you can see what would be a reasonable price for a house in that street.

You could choose similar houses in the same street (with the same number of bedrooms / bathrooms and similar features) and compare their prices to the asking price on your house to see whether the asking price is fair.

If the house is being sold via auction, you can use the highest sale price in that street as your “stop limit” when bidding to avoid over-paying.

3. Property report will be a useful tool in the negotiation process, if you want to negotiate the price down – it will show the agent that you’ve done your homework and can’t be fooled.

Home sellers – why purchase a property report

You can use the sales data to set a reasonable price-range for your house. Why not just listen to your estate agent? Well, to win your listing an agent might give you a much higher estimate for your house price than what you’d get eventually.

But if you have a list of comparable houses in your area with the prices they were sold for, you would be able to double-check what your agent says – which, in turn, would help you choose an honest agent!

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Migrants speak up: why property prices will drop if immigration stops.

by Chris Lang on January 24, 2010
Migrants speak up: why property prices will drop if immigration stops.

Migrant Doctor My dear readers,

I love when you speak to me. It gives me a clue to what you really think about the stuff that I think (and write) about. One of your latest responses was too good not to share, and I decided to dedicate a post to it.

Remember how I asked you “What do you think, will property prices stop if no more overseas IT engineers, doctors or accountants will be allowed in Australia?”

So here is what doctor T. from Germany thinks:

“I guess property prices will stop if no more overseas doctors will be allowed in Australia.

Why ?

No more doctors from overseas to meet the shortage of doctors, not only GP’s but also Specialists like Surgeons, Anaesthetists etc, in the country means not enough doctors for all citizens.

In a kind of “biologic solution” the number of people living in Oz will be reduced. Less people means less potential house buyers and this will result in a decrease of property prices.

You want it faster ? No problem. Send all descendents of the original POM’s back to England and you’ve cleared at least half of the country. ;-)

The statement that wealthy immigrants would push property prices reminds me of an Austrian guy who 80 years ago told people in my country that wealthy Jews are responsible for pushing up inflation.

This was absolutely bullshit as well as the idea that wealthy immigrants push up prices in Oz.”

Thank you, Dr. T. for saying something that probably many would agree with – if only they weren’t too shy or too busy to respond.

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A Man’s Home Is His Castle

by Chris Lang on March 12, 2009
A Man's Home Is His Castle

The saying “A man’s home is his castle” came from England and is a very precise description of the way people subconsciously feel about their homes. Everyone wants to see their house as a comfortable and safe shelter, where they can hide from wild forces of nature.

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How to productively inspect many properties in one day

by Chris Lang on January 2, 2009
How to productively inspect many properties in one day

We all are busy and house-hinting makes our lives even busier. To speed up the house-buying process we have no choice but to inspect several properties in one day. Having done that more than once, I can tell you with confidence: without a schedule you will miss half of the inspections and without making notes you won’t remember anything.

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Making an offer? Play it right.

by Chris Lang on December 29, 2008
Making an offer? Play it right.

One typical mistake of the first home buyers is to show too much interest in the property. Let me explain: when you’re inspecting the property, the real estate agent is inspecting you, looking at the way this house makes you feel, are you in love with it yet, are you imagining your family living there happily ever after. If he sees any signs of such weakness, your position in negotiating the price of the property will be worse, before you’ve even opened you mouth and said anything.

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How to buy a house – Part 1

by Chris Lang on September 24, 2008
How to buy a house - Part 1

House buying is a long process that seems to be vague, confusing and unpredictable in the beginning. The truth is that every home buyer goes through similar stages on his way from the raw idea “I should buy a house” to the actual house he purchases. The length in time can vary, but the stages are pretty much the same for everybody.

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What is the real property value?

by Chris Lang on October 10, 2007
What is the real property value?

Every 2 – 3 years every council evaluates all the properties in its area. There are 3 ways of valuating a property: using Site Value, Capital Improved Value or Net Annual Value. Site Value means just land value; Capital Improved Value means value of both the house and the land. Net Annual Value is a […]

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What kind of house can I afford?

by Chris Lang on August 25, 2007
What kind of house can I afford?

After the latest interest rates raise everybody are talking even more about affordability crisis. The builders say that people who don’t already own a house (which they can sell) simply can not buy a house. “First home buyers just aren’t buying”, they say.

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