Post to Facebook on 1/12/2019 12:17 PM
Commenting on “Labour of love renovation project smashes reserve at Kensington auction”
Another valuable advice not to miss!
Great job and well done to the former owner of the house, but I feel sorry for the winning bidder and the new owner.
I have been remaining you that a house is just a building on a block of land, and the when you buy a house to live in, you must consider the streetscape including the houses around the neighbourhood.
This week, I spend hours in my garden, weeding, trimming, reshaping my sculptured trees, and “beautifying” it. Beautiful flowers with weeds grown around them do not tickle my fancy, and the weeds must be removed.
Unfortunately, if the best house in the street, with great looking façade and extensive renovation within, is among run down properties does not excite me. Unlike weeds which I can just get rid of, it is unlikely you can influence your neighbours to spend money to do up the house, and including mowing the nature strips, or “beautify” the patch just outside the house.
When you look at the advertisement of a property in the internet, you can locate the Statement of Information (SOI) stating the sale prices of comparable properties around the advertised property. My advice is that not to take this as gospel.
Using this property in discussion for example, it is so much over the reserved price, and in fact, it is likely well over the median price of the area. The reason being it has been renovated extensively.
Can you get what I am leading you to? If you can't, then you are definitely a victim of statistics. You WILL pay too much even for a run down property because the SOI information is highly distorted. It may cost you an arm and a leg to bring the property up to scratch!
Be wise, don't let emotion do the thinking and buying!
Thank you for reading.
Commenting on “Labour of love renovation project smashes reserve at Kensington auction”
Another valuable advice not to miss!
Great job and well done to the former owner of the house, but I feel sorry for the winning bidder and the new owner.
I have been remaining you that a house is just a building on a block of land, and the when you buy a house to live in, you must consider the streetscape including the houses around the neighbourhood.
This week, I spend hours in my garden, weeding, trimming, reshaping my sculptured trees, and “beautifying” it. Beautiful flowers with weeds grown around them do not tickle my fancy, and the weeds must be removed.
Unfortunately, if the best house in the street, with great looking façade and extensive renovation within, is among run down properties does not excite me. Unlike weeds which I can just get rid of, it is unlikely you can influence your neighbours to spend money to do up the house, and including mowing the nature strips, or “beautify” the patch just outside the house.
When you look at the advertisement of a property in the internet, you can locate the Statement of Information (SOI) stating the sale prices of comparable properties around the advertised property. My advice is that not to take this as gospel.
Using this property in discussion for example, it is so much over the reserved price, and in fact, it is likely well over the median price of the area. The reason being it has been renovated extensively.
Can you get what I am leading you to? If you can't, then you are definitely a victim of statistics. You WILL pay too much even for a run down property because the SOI information is highly distorted. It may cost you an arm and a leg to bring the property up to scratch!
Be wise, don't let emotion do the thinking and buying!
Thank you for reading.
