OverRun

I thought I'd try the onthehouse app with the properties listed by bcworld.

34 Lascelles Street. Quoted at $490k-$530k. Sold at $620k.
From the App: $557,900-$709,900 'rough estimate'
That's not too bad.

16 Kerferd Steet Quoted at $620k - $680k sold at $753k
From the App: $535,400-$569,400 'good estimate'
That seems way off according to the App. So I searched the property and found this on a real estate site:
Ready to simply move in and enjoy, this fully-renovated Californian Bungalow is certain to make an impression with its spacious design, quality appointments and fabulous location. Perfectly-presented inside and out, the homes expanded floorplan features three large bedrooms (all with BIRs) and dedicated study with built-in desk and bookshelves, superb modern bathroom, light-filled open-plan living/dining area and well-appointed kitchen with dishwasher and stainless steel cooking appliances. Other highlights include a family-sized laundry/second toilet, ducted heating and evaporative cooling, polished hardwood floors and high ceilings throughout, Caesarstone benches (kitchen/bathroom/laundry), plus a delightful undercover entertaining deck, private backyard with perimeter gardens, front off-street parking Then I checked the photos, and I was really impressed. Someone has renovated this house very tastefully - and recently. And it looks like $200,000 worth of renovation to me. This explains the difference between the App, estimates and selling price.

44 Clarendon Street Quoted at $680k - $740k sold at $841k
From the app: $673,100-$759,100
Again that seems off according to the App, and the estimates. Once again, I searched the property and found it on a real estate site. The same sort of renovation - perhaps not as extensive or extraordinarily tasteful. Fancy island kitchen, ducted heating and refrigerated cooling, alarm system, polished timber floors and high ornate ceilings throughout. . . . Again someone has renovated this house tastefully - and recently. And it looks like (not quite as much - say) $120,000 worth of renovation to me. This also explains the difference between the App, estimates and selling price.

I'm not trying to apologise for the App missing the right price in those cases, but what I am learning here is that it is a valuable and reliable tool to be used as part of the valuation process. Take the App, adjust for renovations or extensions, and that will get you pretty close to the price. For me that adds some science to the process and means that one is not just relying on 'real estate agent estimates'.

I had never previously understood Melbourne prices, and living 4000 kms from there, I never thought I would. However I am feeling a bit more confident now that I can make a reasonable estimate using the App and some legwork.

Beoz

Property bubble? A bubble made out of kevlar.

NJJ

Yep same happens in Melbourne a lot too.

Swerv-o

I don't think that auctions are a great way to sell a house. Not only do they seem to add a whole lot more costs, but they are also a bit of a public spectacle - often being carried out on the street outside the property.

I don't think I would use one to sell my house. Actually, I think I would probably take out a months advertising on domain and try to sell it myself with no agent in the first instance. That was actually how I bought mine - private advert on domain, and negotiated directly with the vendors. No agents involved to muddy the waters.


S

Beoz

When are you selling? Lets talk .....

Swerv-o

Maybe next year - not really decided. Sydney is giving me the shits in terms of job opportunities, so I am starting to think about moving on elsewhere. Even then I may decide to just let the place out.


S

Beoz

When you decide let me know. More than happy to take agents out of the loop. Can't stand agents.

bcworld

I went to an auction recently and the agent just kept saying to bidders..."c'mon they're only numbers!"

Beoz

I just can't help being rude to them. Soon as they open their mouths its just an open invitation.

jad n rich

I would agree!



Crazy prices down there and even more crazy stamp duty.


Someone mentioned 'on the house', I am wary of it, it had our house in QLD up for $341,000. Acerage, 5 beds, pool, normal block houses in the street have sold for $850,000.

bcworld

Stamp duty rates in Vic are absolutely criminal.

jad n rich

My son hopes to buy his first home there, so he gets a bit of discount, but WOW.

Went to 2 auctions down there a month ago. Both went way over guide price, but very odd, at both, just as the bidding looked over a guy in suit pops out of car/behind tree and throws in bids around 50K over, once the price is up and others are back in with 1 and 2 K bids he disappears.

i thought the fake bidder thing had been cleaned up but seriously looked suspicious IMO.

jad n rich

The Owners Corporation.

Found some that despite appearing to be normal blocks, having a shared driveway meant you became part of a owners corp, with fees, meetings, and even them controling house insurance.

Not sure how others feel about it, but seemed very common in VIC.

Subdivision. Is your neighbors house going to be 16 units in a few years time

Beoz

Check this

http://www.news.com.au/realestate/ne...-1226726319167

run down, 1 bedroom, without a view, places for over a million.

I just fail to see where anyone is going to make money on something like this unless they hold onto it for 10-20 years or they are a builder and can do it up on the cheap.

Rent is not even going to come close to repayments and if they are buying to live it it would be far cheaper to rent something better.

Swerv-o

Don't point out those things - nobody wants to hear all that, they are too busy writing the cheques to get the property into their SMSF...


S