Post to SinFongChanRE.Wixsite.com on 4/5/2018 1:46 PM
Commenting on “FOMO is out, FOOP is in: How to avoid paying too much when buying your new home”
https://www.domain.com.au/advice/fomo-is-out-foop-is-in-how-to-avoid-paying-too-much-when-buying-your-new-home-20180429-h0zelf/
I am not a qualified valuer, and therefore I cannot carry out a “valuation” on your property. In fact, almost all real estate agents and agents representatives are not allowed to value your property, but they can “appraise” it and give you an estimation.
My my favourite real estate subject was Valuation, and therefore my blogs that discussed properties being overvalued were not based groundless guesses.
The worth of a property or Capital Improved Value (CIV) is a combination of the worth of the land (Site Value SV) and the improvement. The market value is not the real worth, but a perceived value paid by the final buyer. The guess what a buyer is willing to pay for a property is more than working on the hard figures based on CIV, but a good knowledge of marketing and human psychology.
The real estate market is frequently reported in the media and reflected in the market trend, while buyer psychology relates to demographic / buyer needs and wants of that time. In a buoyant market, the guesstimation of the psychological aspect is a tough call, and that is the time of Fear Of Missing Out FOMO.
While market is settled, there should not be any fear of over paid FOOP, if you are using the SV or CIV as a guide,
SV is more important; just imagine the property is destroyed by fire, flood or tsunami, the land will still be there even if all the improvements are gone. Another important factor should be taken into consideration is that land appreciates and improvements / building depreciates.
Many buyers are naive to pay a total amount for the land, building / improvements, plus the furnishing or chattels. Why should you pay more on stamp duty on irrelevant non-fixtures?
So, when you go for an open-for-inspection, read the Vendor’s Statement, also known as Section 32 carefully, and identify the site value shown in the Council Rate and Valuation. Add your perceive as the amount on the property, and you come out with a realistic price.
Thank you for reading.
Commenting on “FOMO is out, FOOP is in: How to avoid paying too much when buying your new home”
https://www.domain.com.au/advice/fomo-is-out-foop-is-in-how-to-avoid-paying-too-much-when-buying-your-new-home-20180429-h0zelf/
I am not a qualified valuer, and therefore I cannot carry out a “valuation” on your property. In fact, almost all real estate agents and agents representatives are not allowed to value your property, but they can “appraise” it and give you an estimation.
My my favourite real estate subject was Valuation, and therefore my blogs that discussed properties being overvalued were not based groundless guesses.
The worth of a property or Capital Improved Value (CIV) is a combination of the worth of the land (Site Value SV) and the improvement. The market value is not the real worth, but a perceived value paid by the final buyer. The guess what a buyer is willing to pay for a property is more than working on the hard figures based on CIV, but a good knowledge of marketing and human psychology.
The real estate market is frequently reported in the media and reflected in the market trend, while buyer psychology relates to demographic / buyer needs and wants of that time. In a buoyant market, the guesstimation of the psychological aspect is a tough call, and that is the time of Fear Of Missing Out FOMO.
While market is settled, there should not be any fear of over paid FOOP, if you are using the SV or CIV as a guide,
SV is more important; just imagine the property is destroyed by fire, flood or tsunami, the land will still be there even if all the improvements are gone. Another important factor should be taken into consideration is that land appreciates and improvements / building depreciates.
Many buyers are naive to pay a total amount for the land, building / improvements, plus the furnishing or chattels. Why should you pay more on stamp duty on irrelevant non-fixtures?
So, when you go for an open-for-inspection, read the Vendor’s Statement, also known as Section 32 carefully, and identify the site value shown in the Council Rate and Valuation. Add your perceive as the amount on the property, and you come out with a realistic price.
Thank you for reading.
