How Reliable Are the Estimates from Value Sites

I had a look at this off-the-plan townhouse in a south-eastern suburb in Melbourne a few month ago. It was priced at $850,000 at that time. I liked the property. The location, interior and aspect of the property, everything was right for me. However, I decided to not make an offer at that time because I had heard so many bad things about off-the-plan properties and it was over my budget of $800,000 anyway.

A few days ago, I had a chance to look at the property again, which is still available. I liked it more. Now, it is completed and is ready to move in and four of the ten townhouses in the estate are now occupied. A new real estate agent is selling the remaining properties and he says the builder would be happy to take an offer of $800,000.

I tried to check the property's value at propertyvalue.com.au. I could only check the estimate of the townhouse right next door, which was sold last month and is exactly the same size with the same configuration. Its estimated value is $620,000 - $800,000!

What should I do? According to this information, $800,000 is way too expensive, right? Or not necessarily....? Please correct me, if I am wrong since I do like this property, and if I am found to be wrong I am willing to go ahead. How much do you think I have to make an offer on this townhouse? Would somewhere around $700,000 - $720,000 be the fair price...?

 

Those online estimates tend to be wildly inaccurate.

What did the others in the complex sell for?

 

I would look at comparable sales. As comparable as you possibly can find. You could also do a bank val. But definitely I would be doing in depth comparable sales research from actual sales. Not just listed For sale.

Once you understand the prices in the area you can then know what is a good buy in price. That would be my approach.

 

I couldn't find any info on sold prices. I could only find those estimates.

 

Get a broker or agent to get you rpdata information.

 

Get a registered valuer to value the property

 

Do you guys think rp data is reliable? (I'm totally new to property market.)

 

For comparable sales, not the valuation.

as for the usual concerns about off the plan....

 

This is usually a given but as you have said you are new I will ask the obvious just in case.

Have you tried doing a search off sold prices on real estate.com?

Have you contacted the agent who sold the others to ask the sale price? Or even just typed the addresses into google?

 

Don’t be afraid to ask an agent what comparables they are using for the property. If the vendor is driving the price it may give you an insight into that dynamic, but also will give you an idea of where expectations are.