How to find pricing disparity between renovated vs unrenovated?

Discussion in 'Property Information Resources & Tools' started by 1474, 24th May, 2017.

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  1. 1474

    1474 Active Member

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    Hi Guys,

    Just looking to find pricing disparity between renovated vs unrenovated houses within a specific suburb?

    Short of manually calculating and doing your own surveying of each individual property for every suburb you are looking at, is there any report or tools people know of to use for this?

    Thanks in advance!
     
  2. paulF

    paulF Well-Known Member

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    I don't believe there is any kind of reporting that reflects that. It would be almost impossible to do this other than manually as you mentioned. No two renos or even properties are the same so pretty hard to gage the difference but maybe market comparables can shed some light.
     
  3. 1474

    1474 Active Member

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    Residex previously had a report for around $200
    Jane Slack Smith expert renovator has mentioned this 'pricing disparity' criteria in her strategies.

    As far as the data analyst companies, obviously its doable but not enough people using them to warrant it as a product?

    Unless someone else is aware of a similar product for investors?
    Can anyone provide some further advice or criteria when narrowing in on a renovation suburb.
     
  4. paulF

    paulF Well-Known Member

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    Thanks for that, never seen those kind of reports to be honest.How accurate are these reports though? How can they provide a realistic value of a certain reno out of the thousands of renos done by different builders and diyers?
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Short of working from end market value and deducting cost of works, risk, profit, holding costs - there is no short cut.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    Ironically, sometimes unrenovated properties sell for nearly as much as renovated ones. Apparently some people want to renovate to suit themselves.
    Marg
     
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  7. Chris Au

    Chris Au Well-Known Member

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    Agree, with the influx of reno shows, the price gap appears to becoming smaller. A lot of paper calcs incorporating the factors below.

    Agree. the 135% calc works ok here (renovated properties need to be about 135% of the price of a comparable unrenovated property) - but need to be apples for apples.
     
  8. 1474

    1474 Active Member

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    Im sure it wouldnt be completely accurate, i believe the report allows people who have honed in on a state, to then gain a shortlist of suburbs where there was an 'above average' pricing disparity between standard properties vs "renovated properties" im sure residex would have analysts running software programs to flag down sales and listings of keyword: "renovated" properties to then broadly contrast with the average sales prices and provide some sort of statistical data to eliminate the end consumer searching through hundreds of suburbs, this is merely what i am looking for.

    There must be similar reports out there somewhere! LOL :D
     
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  9. hammer

    hammer Well-Known Member

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    I recently bought a renovated place....there kinda was no price disparity between it and an un-renovated place.

    For us buying the renovated place was a no-brainer.

    But this is Darwin mind you. I think it may depend on individual markets....
     
  10. Brickbybrick

    Brickbybrick Well-Known Member

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    I recently saw an unrenovated house go for at least $300k more than renovated houses in the same suburb and even the same street. This was in a middle ring Sydney suburb. On a hot market almost impossible to derive what the disparity in value should be.
     
  11. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    It is a common misconception that there is a rule of thumb for all suburbs. There is not. I see some areas with big price disparity between unrenovated/renovated and (much more commonly) other areas with almost none. Choose you area very carefully or you won't make any money if reno for profit is your goal.
     

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