Is this a good price

[geordiepaul2001]

Hi all,

I have my eye on an 11 year old 3 bedroom house with ensuite to master bedroom, garage, and conservatory.
It sold in 2006 for 126k, its highest price.
It has been sold as part ex on new build, whereby the home builder has given them 130k.
They then listed the property in November 2007 for offers over 120k.
The property has now been reduced to offersover 99,950.

Is this a fair price?

The house adjoining (which is identical) sold for 155,000 last year.

[Ronny]

Hi Paul,

Its very hard to state what is a good price for a house in the current declining market.

To be honest last years sales prices cvannot be used as any guide of where the market is at now.

It may be worth speaking with a surveyor, not an estate agent, to get their views on what an approximate value would be.

[hsc-online]

It is depend on location, Better to do some online research on the portals. Thats help you.

[property investor]

Is it the developer that is looking to sell the property? If it is then they won't want to keep an old property on their books, developers are looking to make money on their investments.

The house next door could be in a lot better condition, a new kitchen, bathroom etc.

It is hard to judge without visiting either property but it sounds like it is a good investment.

[crystal_10]

It always depends on the location you the property is actually found

[phyllis11]

Hi
I think your price is fair .
Also its fair for Property Market .
Thanks

[daisy_luckas]

Where the property is located? Local property market plays an important role. I tried to sell my house through an agent; they buyer reduced price after initial viewing as a similar property was selling at a lower price!

[brownakil]

Hi geordiepaul2001,

It all depend on your strategy, what strategy are you using to decided if its the right property. There are some question you need to ask yourself before you even consider purchasing the property or to decide if its at a good price?

What are your strategy?

Are you investing for long term capital growth or cash flow?

Can the property be converted for other use?

What cost would be involved in renovation ?

Are you investing in single family, multi family, condo and/or apartments and what price?

Can you find similar properties on the market to compare like for like?

What is the yield for the area and what is the expected rental value if you decide to purchase?

What's your exist strategy? Its good and well know what price you make get it for but what do you plan to do with it in a years time or two or three. Deciding all this in advance is something you need to look into.

Is it a good area to buy in and if you do purchase the property think about who you can sell it on too as a worse case scenario.

If you can find a comparable property on the market then try an estimate what you can sell it for and go from there.

Always factor in all your cost in acquiring your investment purchases.

Every success property investor or investors general know the money/profit is made when you buy not when you sell.

[propertydiamond]

It sounds like a good deal, however as already discussed there are lots of factors to consider. Enrol the help of a surveyor or estate agent to get some professional advice.
I do think it's a great time to invest in property if you can afford it; but you still have to be cautious.