Market Research Tips

Discussion in 'Where to Buy' started by sliderc, 31st Jan, 2016.

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  1. sliderc

    sliderc Member

    27th Oct, 2015
    I'm trying to learn more about applied property market research strategies.

    I've got a few investment properties which admittedly, I bought without doing huge amounts of Market research however have managed to, what I feel, buy stable investments while maintaining my cashflow (mostly nuetral).

    I am however still a novice when it comes to data mining, analysing trends etc.

    Anyway, Im looking to purchase again and wanted to outline what I do, hopefully to recieve some advice on how I could improve.

    I am aware of the MAP scheme, Identify Market first > Area second > Property last.

    I am one of those people that have historically bought local (alot of times this is seen as a mistake), being from the Brisbane Area (Redlands) I feel like I could be ok for now, as it seems these Markets are at the right stage in the so called property clock so I may be able to get away with that while Im still learning...will have to wait and see.

    Anyway, I have never tried to analyse the Market much, so "M", I have no experience with however not really the point of the post. I suspect M information may be a macro summary of A and P...

    Looking more at the A and P...

    When looking at an Area, the first thing I do is go on and look at the last 12 months worth of sales data for that area. I spreadsheet all the sales in the suburb, their high level detail (Bed/Bath/Contstruction/Pool/Entertaining/Land Size) and take a screenshot of the enlarged map so I can see where it is in the suburb.

    I then take the same list and compare the sale price to the estimate on, noting the + / - figure from the sale price.

    Thats pretty much it, I guess I just use RE + onthehouse to sus out the average sale prices for the area.

    The looking at the properties for sale, I do the same thing, RE details + Location + Compare against onthehouse.

    I generally then like to shortlist some sold properties, shortlist some for sale properties and then drive the suburbs to get a feel before inspection.

    TLDR: + Onthehouse - SoldHistory vs ForSale.

    Its very basic I know, like I said, still learning. Are there any other resources/data that I should be keeping an eye on?

    Ive taken a look at Pricefinder a few times however I feel like onthehouse is more accurate (for sales estimates), which I found odd consider Pricefinder is a paid service.

    Thanks everyone.