IS ASKING PRICE THE SAME AS MARKET VALUE?
The asking price of a property may be either higher or lower than market value – depending on how good the selling agent is.
WHAT IS MARKET VALUE?
This is what the property is worth. Sometimes, however, a property may be worth more than what the agent thinks.
Asking price could be less than market value?
Getting a competitive price on a property is not necessarily down to persuasion. For instance, an agent may have sold a house on Smith Street for $350,000 six months ago.
Since then, the market may have gone up $50,000, but, without a recent sale to compare it with, the agent may sell another on Smith Street for $350,000.
That means the asking price is $50,000 below market value.
NEGOTIATING A GOOD DEAL
Selling agents who are on top of the game will be more difficult to negotiate with. Structuring the deal to deliver a win-win outcome can help your chances at slicing the price.
Buying in bulk can help you get land at a wholesale rate, which is why Binvested’s group buyer power is so indispensable.
WHAT IS A GOOD DEAL?
A foundation property should be affordable and below market value to make it worthwhile. It is always good to look beyond the asking price to see how it stacks up against the market.
Have you purchased a property below market value because the agent wasn’t up to scratch? Please share your experiences in the comments section below.