Help! How to Value Waterfront Property in a Hot Market?

Hi Property Experts,

Seasons Greetings

My family and I have been waiting months to get back across the Queensland Border to sell our property. We have previously spoken with two local agents and thought we had one picked out to go with but have not confirmed that yet with them. We had an ‘ off market proposal’ from the other agent with a potential buyer a couple of months ago, which we heard no further.
Now, a neighbour has submitted an emailed proposal to purchase our property, ‘as is, and at Market Value’.......

We would be very happy for this neighbour to be the ultimate owner for our home as they have been great neighbours but considering it is owned by my family it would need to be split several ways and we want to make sure we are achieving the maximum market value we can.

How is the best way to negotiate this?
Do we go to the agents and take it to market?
Or get valuations from agents? Or is there any other way?
I can only see true market value as opening it to the market.
This would entail agents fees and marketing etc and I don’t know if that negates any higher $ gained above agents valuation or is it possible in a hot market that the gains could be far greater as we have seen crazy purchases many $$$$ above valuations, and then the neighbour has to meet the market or not purchase.

It is hard with emotion involved. We are going to sell but how would you experts do it?

Ps I also would need a recommendation on a lawyer who could act on our behalf in SE Qld

Thank you for any sage advice and recommendations. SS9

 

But they also see the upside "sold within x days".

Possibly consider a "first right of refusal" at the end of the first week, if they won't stump up for the best price after a few days on market, then they're probably not going to be the ultimate buyer.

How far below market do you believe their current offer sits?

 

Jane elliot Gold Coast is good

 

I would take the property to auction, that way, no one can point the finger ...

 

Reality is that if your neighbour is fair dinkum about willing to pay “market value”, they will participate in a competitive process.

Take it to auction.

 

Hi Wylie
Thank you for your response. I think you are right. My gut tells me to take it to market also I think the emotional attachment side is the hard part. It would be nice to achieve $550 more than an offer.

 

Hi Scottnomates
Thank you for your reply. They have not offered anything yet but have just asked to be able to negotiate to purchase it.
We don’t even really know what market value is currently. I guess it’s as much as someone wants to spend on a good sized absolute waterfront house with its own sandy beach requiring no or only minimal upgrades, 35 minutes from Brisbane Airport - it seems impossible to tell lately what people will pay. I have been monitoring the mid north coast of NSW and homes are going several hundred $$$ k more than pre Covid. It’s so unpredictable.
So by ‘first right of refusal’ do you mean have that placed in the contract under the neighbours name? I’m not sure what that means ☺️ I’m gonna have to google it.

 

This is for a Lawyer? Would she cover Moreton Bay Area?

 

Thank you. Yes you are probably correct. is the Auction the best method at the moment? Or one of those Online best offer scenarios, which I think is like an Auction but without an end date, just a reserve that needs to be met.

 

I had a neighbour try to low ball me for years. It continued with the agent.
After it sold I got a call "Why didn't you tell me? I would paid you that without the agent"...yeah right mate.

 

I think I just feel guilty they have been so good as neighbours. But I’m trying to keep a fair head.

 

Hmmmm, I didn’t want any neighbours approaching us for that reason. It is hard to have to listen to complaints.

 

You would basically be asking for best offers as at close of business on xx/xx/202x. Conditions would include something to the effect that the vendor is not bound to accept the highest nor any other bid. Your solicitor would draft the appropriate clause.

Obviously, the agent would want payment for brokering the deal with whoever ends up successful (possibly negotiate a lesser fee if it's your neighbour).

 

From your previous post I know where your house is.

That street is tightly held with few comparables, so will be hard for anyone to value. I could only find two “recent” sales, $1m in Nov 20 and $1.4m in March 21. Both were fairly impressive houses. You will know how yours compares.

 

They have been good, but your right,

 

Thanks Marg4000
Yes, difficult to get an accurate valuation. Our place is reasonably comparable to the ones you mention. Some argue more desirable as single level........the neighbour wants to offload their two storey as they are aging, and an agent has mentioned another interested party who wants single level in the street......would be interesting to know in $ terms how much that affects value. Different for each person I guess.

 

Just put it up for Auction and let the market decide.

That is the best way to value a house. Its worth what someone is willing to pay for it. Just make sure you get the attention of the right buyers and proper demographic if you want to push the price bracket to the absolute maximum.

A good agent that works hard, knows the area and demographic well and knows how to market/sell and you'll get extremely strong price in todays market.