Finding a Fair Value of a Property for a Private Sale (Not through Agent)

LKingofsl on 05/02/2018 - 14:01

Hi,

My neigboour is planning to sell his house and we have shown interest. However I am finding it hard to come up with a fair value to offer.

The property is a large town house.

I have tried to find similar properties sold in the area, but I can't find a property that matches all the characteristics that was sold in the last 6 months.

Estimates from Realestate.com and Domain vary by around $50k.

I also tried NAB Property report, they haven't quoted a value. NAB says the systems cannot do an automatic valuation as the property hasn't got historical sold price. The current owner bought it off the plan 7 years ago.

Do you guys have any other suggestions to find a fair value for this property without paying for a valuation?

Financial

Comments

  • bobbified on 05/02/2018 - 14:13
    +7

    The "fair value" will be the value that you can both agree on.

    There's no right or wrong answer and it's not going to work if either of you don't agree.

    We had this issue with a neighbour previously - her "fair value" was about $100K more than what our "fair value" was. (It was because she knew we were waiting for her to sell).

  • djkelly69 on 05/02/2018 - 14:22
    +1

    Valuations don't compare sales/properties that necessarily have all the same characteristics, just properties which are similar. They then state if the other sale was comparable, superior or inferior to the subject property, and work out a general price from there.

    Personally I would just work out how much you think it is worth (using above method), then ask him what he is hoping to get, and see what happens.

  • chumlee on 05/02/2018 - 14:31
    -2

    Offer him bitcoin

  • QW3RTY on 05/02/2018 - 14:39
    +4

    I have tried to find similar properties sold in the area, but I can't find a property that matches all the characteristics that was sold in the last 6 months.

    1. List all the sales which you consider comparable.
    2. Make note of the characteristics and features that each property has.
    3. Review the trend of price as characteristics change between each property.
    4. Present this evidence to your neighbour and decide on a value which would be most representative of the subject property.

    Congratulations, you just conducted a property valuation for free.

  • geek001 on 05/02/2018 - 15:00
    +2

    What I have notice is that you can look up the house on onthehouse.com.au and get an estimate. The usual listing price by an agent would be the highest of the estimate. What it would sell for would be a little bit under that if your suburb is average, but more than that if your suburb is in high demand. Good luck.

  • Typical16-bitEnjoyer on 05/02/2018 - 16:58
    +2

    Ask an RE agent for a written evaluation. It's free. There's no obligation to sign with them. Then use that minus 20% as a starting point to negotiate with your neighbour ;-)

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