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 As home loan advisors, we keep our fingers on the pulse of real estate to bring you up to date information and helpful strategies when it comes to investing in property.

 Recently, we have seen an upward trend towards allowing the market to dictate the price across the Auckland market and further afield.  This is evident in the sheer volume of listings for sale by auction, as opposed to selling for a fixed price.  

Rating valuations (generally based on council rates) as well as online estimates can provide you with an indication of what a property is worth. However, these factors may affect the value of a property and make appraisals less reliable. Factors like being close to the beach, schools, or having sea views can influence the value.

 Here are some great ways to get a clearer picture of what your target property may sell for:

 1. Take a look at the Council Valuation, any Registered Valuations online (if there are any), and the agent's estimate.

Ensure you also check when the last valuation was done by council as Auckland houses were valued near the top of the last cycle.

 2.   Check out similar properties that have sold in the same street and suburb

The map on OneRoof can be a valuable tool and enables you to filter the following information;

-       What’s currently for sale

-       What has recently sold

-       Estimated values for properties

To understand the competition, check what's currently for sale in the same area as the property you want to buy.  Too much of the same ‘cookie cutter’ property could work in your favour – conversely, something unique or seldom found may work against you as it may have more demand and fetch a higher price.

Check out the “recently sold” houses in your area and find out what they sold for. To understand property prices in your area, use the Oneroof map and filter by "Recently Sold."  This will help to gain a more accurate idea of what your target property may sell for.

You can also check the property history on Oneroof's estimate pages to see how long each property was on the market. Listings that sell quickly often show a hot market in that area and indicate there could be a high level of competition.

Also check out the images of recently sold properties, as these are also a great way to evaluate your potential property against what has sold.  If those properties have more bedrooms or another feature such as backs onto a reserve, features a bush or  sea view etc, then there’s a high chance you will pay less.

 However, if the property you like is better than the other, prepare to pay more.

 3.   Create an excel spreadsheet (yes, I am an Accountant by trade!)

You shouldn’t look at one property in isolation. We recommend you get the figures for at least another seven to compare to.  Create a spreadsheet and put the houses that you feel are nicer that sold recently above your potential property. 

Then put the ones that aren’t as nice below yours.

Create different columns for bedrooms, rooms, bathrooms, parking spaces, and condition (superior or inferior). Add another column for any unique features you believe will make it stand out from the rest.

This process will help you clarify your thinking and narrow in on a more specific price bracket.

 4.   Use this information to negotiate your buy price

 If you are pressured into offering a specific price for your potential home, you could say “Third Avenue around the corner sold for $880,000 and that property has a larger floor area and a bigger section. Your vendor isn’t likely to get that much”.

Before negotiations start, it's important to analyse and consider the numbers. This will help you feel more confident about making an offer and setting your maximum price. 

If this task feels difficult and you're feeling overwhelmed, we can help by running property reports that give similar results. Simply get in touch early in the process and we can send them to you. 

Get in touch today for a sample report and let us help you get that property of your dreams!