RP data valuation

Discussion in 'Property Market Economics' started by Yek, 19th Apr, 2018.

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  1. Yek

    Yek Well-Known Member

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    Any thoughts on how accurate these valuations are? I've offered 15% below what the bank valuation came in at and it was rejected by the vendor. Unwilling to go higher as there are a few negatives with the layout and dimensions.
    Wondering if I should up the offer?
     
  2. Propertunity

    Propertunity Well-Known Member

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    RP Data vals that are software generated without any human intervention are not particularly accurate.

    It sounds like the vendor doesn’t want to sell below bank val. Why would they?
     
  3. Yek

    Yek Well-Known Member

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    The bank used RP data to do their valuation. The vendor incidentally has advertised for the same number.
     
  4. Propertunity

    Propertunity Well-Known Member

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    So they don’t want to sell 15% below. Increase your offer or move on.
     
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  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Just so we're clear, you got an RP Data report, made an offer 15% below that figure and it was rejected?

    In many markets, properties are selling for significantly more than the figures an RP Data would produce - probably something at the top end of the range or even higher.
     
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  6. Yek

    Yek Well-Known Member

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    They advertised for 20% more than the valuation 80 days ago... crickets. ... then auction...... postponed by another 4 weeks.... then cancelled.... new price guide at current rp data valuation.... still no offers.... I'm the only one that's offered
     
  7. Yek

    Yek Well-Known Member

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    Lower north shore

     
  8. neK

    neK Well-Known Member

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    Really not sure how much clearer this comment could have been.
    @Yek so do you want the property or not?

    Vendor has a figure in mind, they probably aren't in a rush to sell. So either up your bid, or walk away (and probably kick yourself in a few months time).

    I feel that many buyers are holding back due to the doom and gloom in the media, but in my opinion, that applies to units where there is a potential over supply. Houses on the other hand aren't in the same boat, and most vendors aren't selling because they need the money.... its more so because they want to.

    At some point, people are going to realise that houses in particular aren't actually going to come crashing down, but rather stay flat.
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    They don't want to start the downhill stampede - are they asking an unreasonable price based on your market analysis?
     
  10. Yek

    Yek Well-Known Member

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    Well it's down by 20 percent since it was first advertised
     
  11. Yek

    Yek Well-Known Member

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    I am trying to snare a relative bargain.. they have settled and moved out into a new home... and there is no one else that's made an offer
     
  12. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    In that case, let the agent know that that's your offer. They're welcome to take the time to think about it and come back to you at a later date if they wish. They might come back to you in a few weeks and accept.
     
  13. Yek

    Yek Well-Known Member

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    It was presented to the vendor... rejected
    I was told.. open to higher offer and if anyone else makes a higher offer will keep me posted
    Just sitting tight for now
     
  14. Jane Ridder

    Jane Ridder Well-Known Member

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    Good idea if you're not sure about the property @Yek.

    PPOR or investment?
     
  15. Yek

    Yek Well-Known Member

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    Owner occupier home.
    Not in love with the layout but comes with water and city views.
     
  16. Eric Wu

    Eric Wu Well-Known Member Business Member

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    it is interesting how the sale process works, being there many times. a property on the market for a while, no offer, one person puts in an offer, and other potential buyers found out, and start putting in offers as well, then the competition starts.

    if you keen on the property, maybe offer a fair price, win-win
     
  17. Yek

    Yek Well-Known Member

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  18. Scott No Mates

    Scott No Mates Well-Known Member

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    2% gross or less is not unusual.

    When you take out >$25k for land tax, $3k rates $1k water etc you're lucky to break even before interest.
     
  19. Yek

    Yek Well-Known Member

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    What is the impetus for calling this loss making lead weight liability an investment? The purchase requires $250k in taxes .... and they can't get a measly 2k off it in a week
     
  20. Scott No Mates

    Scott No Mates Well-Known Member

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    If I was throwing coin like that around, I'd be buying CIP in Artarmon/Crows Nest nearer the metro for 6% nett return.